Rents have been rising steadily across the nation.
“While it seems that rents are rising at the expense of home values, the opposite is true. A thriving rental market will stimulate home sales as investors snap up low-priced inventory to convert to rentals. That, in turn, will lower the number of homes on the market, which will eventually help put a floor under the value of all homes,” says Zillow chief economist Stan Humphries.
The fundamentals of investing do not change. The real estate market has been more dynamic and extreme but the buying below market, renting for cash flow and holding for the long term is a winning strategy.