As the U.S. real estate market has taken a hit, roiling from the after effects of the subprime mortgage lending crisis with home prices and sales numbers down and foreclosures at record highs, one area shows a silver lining among all the mess: the residential rental market.
As lending standards have tightened as creditors have become more cautious, it has made it more difficult for people looking to buy houses to get approval for a mortgage, and many have found they must turn to homes for rent, at least temporarily, driving up the demand, according to a PricewaterhouseCoopers survey released this month.
Adding to the effect is the fact that many homeowners who had hoped to sell their homes are now holding out and trying to wait for prices to recover, since home prices nationwide are down as much as 10%.
Despite the fact that demand for retail rental space is down, this increased demand for residential rentals can be felt throughout the market. Many who have seen their homes foreclosed upon and been evicted are now turning to rental units as well, as they find it both difficult and heart-wrenching to go through the mortgage process again.