Rising Rents are Making Affordable Apartments Expensive

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Trends say that more and more people are looking to rent, rather than own. Developers are excited to capitalize on this increase in demand. However, in order to make their developments financially feasible, luxury apartments in central areas are taking the highest priority due to a number of factors. According to CoStar, more than 80% of the country’s metropolitan apartments are luxury. So where does this leave the lower and middle class families that have been an important part of the apartment demand segment for so long? The high demand of mid-tier apartments and the scarcity of such has resulted in higher rental rates than ever seen before. 

Rental rates for Class B apartments has risen by 5.8% compared to the 4.2% rent increase in Class A apartment rents. The supply of Class B and C apartments has slowly decreased and the development of luxury has sky-rocketed. The rents for mid-tier apartments, though rising, are still less than that of luxury apartments. Applicants for these more affordable housing options continue to roll in. More and more families are continuing to spend at least 30% of their income on housing alone. If the supply of high-rise luxury apartments continues to increase, only then could they become more affordable to middle-class renters.

Click here for the full article from The Wall Street Journal, or click here for more Front Street news... 

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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