Mar
30
2008
Slow Housing Market Good for Oahu Rentals?
Posted by: Jon in For Buyers, For Sellers, UpdatesSlow Housing Market Good for Rentals?
I was asked to explain in 25 words or less why a slowing Oahu housing market might be good for rental property owners……So here goes.
As the 2008 Oahu housing market continues to unfold, one thing is for sure, skittish would-be buyers will remain renters for the time being.
Entries (RSS)
March 31st, 2008 at 6:41 am
Or how about this Jon: “As the housing market continues to unfold, and the effects ripple through the economy, rental rates have got to come down which will be a good thing for those needing rental housing.” (Okay, I may have exceeded the 25 word limit ;o)
Aloha, Mike Kerr
RE/MAX Pacific -on the Big Island
March 31st, 2008 at 9:30 am
Sounds good to me………;o)
March 31st, 2008 at 2:45 pm
From research I have completed in the past, in general Hawaii rental rates increase when the vacancy rate falls below 5%. If we have more renters and no new rental supply…you would expect the vacancy rate to go down….so rental rates could still go up in areas with limited supply. However, in times of low affordability you will see households start to double up. My forecast is slight increases in areas of high demand and limited new construction and slight decreases in areas with significant supply and new construction. Examples would be single family homes in East Oahu may show slight rental rate increases and condominium units in Metropolitan Honolulu show slight decreases.
Overall the state rental rate average should decrease slightly over the next 12 months.