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RentSocial.com COO Eric Broughton on the outlook for the rental market and the areas of strength in the sector.
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So on the same vein a reporter out today from Fannie days shows that increased optimism for the US housing market is getting there and and you saw the cover Barron's saying that housing prices would be moving higher.
So what -- -- in home prices hurt the growing rental market which -- just been on fire air rotten is the president of -- social.
Dot com and you've got your finger on the pulse of the wrenching situation.
What people have looked at a very vibrant renting atmosphere right now but if housing has started to bottom if -- believe that you look at some of the housing starts are starting to look a lot better Eric.
What does that mean it's it's sort of action vs reaction and you will see a negative affect on renters.
Oh I definitely not -- negative effect on renters are still see the apartment market the rental market to be very strong were very bullish on the rental market.
Up until at least 2015 there's many factors are going to that the economy continue to move sideways demographics -- -- sleep on her side.
Would gen Y renters and then now finally -- -- lending environment.
Very difficult to get a home.
These days via you know what that is a -- point that a lot of people don't talk about.
Very tough to get a -- even though the banks were supposed to be lending money but that said Eric a lot of people have looked at the -- market -- that it has been so.
A very strong and wondered are we seeing a bubble or at least the formation of -- renting bubble.
But that's a great question bubble implies that it can pop.
I couldn't say the the rental market -- deathly do not see a pop in the in the future at all goes back to demographics.
The rental market.
Definitely for the gen Y that eighteen to 27.
If you going to be a gen -- person and you're going to be moving into a home you better have that 20% down -- ago.
300000 -- home 60000 dollars I doubt there's somebody that's 45 that has 6000 dollars just laying around rated by -- Home of -- are not cheap though and I and I'm just wondering if the psychology changes a little bit.
Maybe people are starting to look at owning a little home the -- has been foreclosed upon or at least is is cheap right now and they think boy if it's going to move higher like say for example Barron's says.
Room then maybe I should get -- and does that then not give a different perception of what the American dream is at this point.
You nailed it on the head and it goes back to the psyche haven't been going back to exactly we just mentioned American dream.
I don't the American dream has -- a little bit if you stick a step back -- look the American dream the two car garage and white picket fence why can't the American dream now be.
I wanna have a fitness center I would have my dog -- the roof I -- to have access to transportation.
There he gets us -- you're talking about these all service buildings I was gonna say the great American dream a two car garage and half the dog that was -- 2.5 percent today.
Ab fab and we have got to have -- half -- -- social talk about where you see strength which regions of the US when it comes to renting and and by the way people are looking at.
You and what you're saying as a as an -- an opportunity there are a lot of real estate investment trust that it invest in rental properties but where do you see the strength.
Absolutely.
Absolutely what we're seeing through our -- tools -- sentinel around social.
We're seeing at New York City really more of those urban environments for people of axis of transportation.
And also more importantly axis of jobs New York City -- mention Washington DC a very hot market.
Los Angeles as well -- those markets -- -- command higher rents as you know living in New York City you're seeing that every day.
But also I heard you mention earlier about some of the political.
Messages Florida -- a weaker market Michigan some of those are actually weaker markets as well.
Read social dot com president and CE OO Eric brought -- thank you very much people are going to be calling you where consents wanted cheap apartment.
A couple of risks social fighting for you look -- -- thanks so much.
