Why is this?
The apartment and for-sale housing markets usually compete with each other. Historically, the math has been simple and brutal: If the percentage of people who own homes goes up, then the percentage of people who rent goes down. Good news for housing sales often means bad news for the apartment sector, if the number of households that need homes stays stable.
But what’s happening today is different, according to the economists at the National Association of Realtors (NAR). “Rental demand and housing sales are rising at the same time,” says NAR spokesperson Walter Maloney.
In a nutshell, according to Bendix Anderson over on the National Real Estate Investor, it’s because of a combination of 1) an increase in home formations (includes rental homes) and 2) a still quite low supply of both houses for sale and houses and apartments for rent.
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