2010=Record Year for Rental Vacancies

According to Marquette Advisors, a Minneapolis-based, real estate consulting firm, the Twin Cities posted a record year as it absorbed 6,400 rental units in 2010, up from -3,450 (yes, that is negative) in 2009. The absorption rate increase shows a greater demand for rentals. In fact, rentals outpaced new construction in 2010 demonstrating that many families are either forced or choosing to rent instead of purchasing.

We saw a metro-wide decrease from 7.3% vacancy at the end of 2009 to a 3.8% vacancy rate at the end of 2010. This is no surprise as the numbers of families losing their homes to foreclosure or doing short sales continues to rise. These homeowners will need new places to live.

According to the study, rents have also remained steady throughout the Metro area. They also predict that rents may go up as much as 3-4% as demand will continue to out pace supply, forcing a shortage of good rental properties.

Single family home rentals are averaging $200-$400 per month in positive cash flow. If you have ever thought about buying rental properties, now is the time.

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