23
Feb

Inman article debates rental glut in the Phoenix rental market

HomeLovers was included last week in author Steve Bergsman’s “Don’t call it a glut” article on Inman News.  (No membership to Inman? You can also read the full article here.)

Bergsman took another look at a claim from one of his earlier articles, which stated that cities like Phoenix and Denver were showing signs of a single-family-home rental glut.

What did HomeLover’s Mike Sargent have to say on the topic?

“A lot of investors are stuck in what used to work very well, but in our opinion doesn’t work today — the market for under-$100,000 properties including $50,000 condominiums and townhomes,” says Sargent. “This is the cheapest end of the rental pool. Those properties rent very slowly because they compete with apartments. Whenever we see one of them come in, we almost groan because they are so hard to rent.”

This price level doesn’t make good sense for investors, and it is the price range where ‘you get the glut.’

What product does HomeLovers target? Its sweet spot in terms of “fast turns and no gluts” is a 2,000-square-foot house with three bedrooms and two baths. Actually, the more bedrooms, the better. His company has absolutely no difficulty in turning around for rental four- and five-bedroom houses in nicer neighborhoods.

“There are a lot of dominoes that foreclosure rates push over,” Sargent says. “One of those dominoes is great folks in great neighborhoods who are in trouble because the housing market fell. We have a lot of people out there who have a lifestyle that still supports being in a nice neighborhood, but their credit no longer supports them being there. What we are seeing is a huge demand for product from people who two years ago would have been homeowners and today have to rent.”

4 Responses to “Inman article debates rental glut in the Phoenix rental market”

  • chanel handbags

    Hiya, I am really glad I have found this information. Today bloggers publish only about gossips and internet and this is actually annoying. A good site with interesting content, that’s what I need. Thanks for keeping this site, I will be visiting it. Do you do newsletters? Can’t find it.
    chanel handbags http://chanelhandbagssale.weebly.com/

  • Burton Haynes

    I simply want to say I’m newbie to blogs and honestly liked this website. Very likely I’m going to bookmark your blog post . You definitely come with fantastic writings. Thank you for revealing your blog.

  • Mariano Thivener

    I just want to tell you that I am just beginner to blogging and certainly savored your web site. Probably I’m planning to bookmark your blog post . You definitely have outstanding well written articles. Thanks for sharing your web site.

  • Matthew C. Kriner

    I just want to say I’m very new to blogging and site-building and truly loved your page. Very likely I’m likely to bookmark your blog post . You definitely come with amazing stories. Bless you for sharing with us your website page.

Leave a Reply

write essay for meessays online