The Real Deal Miami

Rental market suffers as REITs fare better

August 11, 2009 02:06PM

As the unemployment rate continues to climb, particularly among those in the 20- to 24-year-old age bracket, the rental market has taken a big hit. Nationally, 70 percent of that demographic rents rather than owns their home. While rental activity is up 2.4 percent from last quarter, it is still down a dramatic 58 percent from a year ago and listing inventory is up 29 percent from one year ago, according to a report from real estate appraisal and consulting firm Miller Samuel. CNBC noted that it only costs $70 more per month to own than to rent an apartment. Apartment Real Estate Investment Trusts, meanwhile, have been faring better than single-family home rentals in larger markets such as New York, because they are able to offer lower prices and include amenities in large rental buildings, according to Sam Chandan, president and chief economist of Real Estate Econometrics.