Southern California Real Estate:
Apartment Rental Rates Rising

Good News For Investors ... For Renters ... Not So Much!

There are at leasttwo sides to every equation, and in the world of real estate things are no different. Today we're going to look at rental rates ... which are rising for a variety of reasons. That's good news for investors on one hand ... they are getting more return. It's not such good news for Renters, many of whom are getting priced out of higher priced markets like San Francisco.

There are a variety of forces comvbining to bring about this trend. When the real estate market crashed in 2007 many homeowners lost their homes and were forcedinto the aparment rental market. During the credit crisis that followed, many developers could not get loans and construction of new multi-family units ground to a halt. Nowwe have the end result ofthat: a market with more people wanting to rent and not enough units available in most markets. Thus higher rents.

To look at the trends in detail, here's a great article from Alex Veiga,  AP Real Estate Writer, as it appeared just the other day in the Alliance Review:

Growing demand for US apartments pushing up rents - The Alliance Review

http://www.the-review.com Fri, 11 Apr 2014 07:01:00 GMT

The Picerne Group is among the apartment complex owners with buildings under construction. The company, which owns properties in California, Arizona, Nevada and Colorado, expects to break ground soon on luxury rental buildings in the Southern California cities of Cerritos and Ontario. The buildings, which have nearly 500 units combined, are due to open next year, said Brad Perozzi, managing director of the company, based in San Juan Capistrano, Calif. "We definitely see demand improving, especially the younger demographic coming out of college and being in their prime renter years," ...

Read More Here: http://www.the-review.com/local%2520real%2520estate/2014/04/11/growing-demand-for-u-s-apartments-pushing-up-rents

Savvy Investors Still Have Time!

As you can see by the article, the experts do not expect the trend to "peter out" anytime soon. Once again, this is good news for potential investors. If you're looking for a reliable place to invest, the Southern California multi-family real estate market might be a very good place to look. In our office we specialize in commercial development and commercial investments of just this type of property. Contact us with any questions or if you'd like to discuss the possibility of investing in Southern California multi-family real estate.