The latest numbers from Zillow’s Rent Index are out, and rentals are up across the country. The rent index rose 2% in February 2012 over 2011, while the Home Value Index fell by nearly 5%. In February, foreclosure sales accounted for 20% of all home sales.
“The rental market remains especially strong in areas that continue to experience consistent home value declines,” such as metro Chicago and Philadelphia. There are still problems in the housing market that are getting in the way, such as high negative equity and tons of foreclosures (including the shadow inventory). The increase in rentals is good news, however, especially for real estate investors who are attracted to distressed properties and will decrease overall inventory.
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