If you have been watching rental rates over the past 5 years you noticed a increasing trend. After some decreases in 2009 rents bounced back up by 2012 past pre-recession levels in some cases. As rental rates have increased mortgage rates have dipped to the lowest levels since World War II. These two trends have switched the cost of ownership making owning more affordable than renting as compared to the early 2000's when owning was twice the cost. But in the last 12 months the pace of rental increases have slowed (see OCHN March graph below). Are rental rates now peaking for the foreseeable future?
The cost of owning and rental rates play a game. Sometimes it costs more to own and sometimes it cost more rent. With mortgage rates hit all time lows since the 30 year fix mortgage product was created by the US, the[READ MORE]