Competition for rentals likely to go up
Here’s some food for thought.
- Oil is crawling towards $100/barrel.
- Gasoline? $3/gallon.
- Heating oil? $3/gallon.
- Foreclosures expected to balloon in 2008 with adjustable rate mortgage resets
- Foreclosures and defaults expected to take huge chunks out of property tax revenues
What does all this mean to the average college student?
If you’re living off campus and renting an apartment…
- Energy gets more expensive = rent goes up
- Foreclosures means more people competing for rental properties = rent goes up
- Tax revenues decline means cities have to increase taxes on people still able to pay, like landlords = rent goes up
The bottom line is this: 2008 isn’t going to be a great year, economically. This is pretty much baked in at this point. What remains to be seen is how bad it will be. One of the advanced preparations you can make is to inquire with your landlord if you are currently renting to renew your lease for another year right now at a modest rent increase (or no increase if you have a super relationship with your landlord). If you can lock in your rent now, by the time price pressures force rents up in your area, you’ll be reasonably well protected, at least for another year.
Disclosure: I’m not a certified anything. Any financial advice I give should be validated by someone who has a certification and liability insurance in the event they dispense bad advice. Do not make changes in your personal financial situation solely because you read it here.
