Greenwich Rentals

Greenwich, Cos Cob, Riverside and Old Greenwich RENTALS

I'm not sure I have ever seen the rental market as hot as it is right now.  If the house/unit is well priced, it is not rare to see a rental go in days, if not hours.  Many rentals are actually going for above ask - some thousands... My gut reaction to this demand is that we have lots of families that have been on the fence about buying a house and didn't find what they wanted (or couldn't close on it) and need to rent to get in for the school year. I've had this conversation with other realtors who don't agree and feel that this demand has little to do with the school year. We will see come September.  Regardless for the reason, demand is through the roof for rentals. If you are interested in getting something please act fast. If you are just kicking the tires that's fine, though don't go out unable to sign a lease and hope that something you see now will be available in the weeks to come.In the past month there were 94 leases signed in Greenwich.  About half of those went within a month and about a quarter went within days.  When compared to previous months (though this market is cyclical) this is a very fast moving pace. We are also seeing some large ($15k+ a month) rentals that have been sitting start to move.

Greenwich CT (&National) RENTALS

I went to a presentation not too long ago by Lawrence Yun, Ph.D (Chief Economist of the National Association of Realtors) on the state of the housing market and how it might apply to Greenwich CT real estate.  I wrote up a little summary on this a couple weeks ago that yo can find here. One of the charts I found interesting was this one:This chart shows the relative increase in price of real estate and cost to rent since 1980 for the nation. As you can see, up until approximately 2002 both rentals rates and cost of real estate grew as extremely similar rates. At this point home prices sky rocketd and rental rates continued its normal growth.  If I had this charge for just Greenwich, CT I'd be willing to bet the numbers and growth patterns would be extremely similar.  The problem with analyzing Greenwich real estate and Greenwich rentals is that there simply isn't enough data to do a proper macro-level analysis.Looking at the past 10 years we can see how home prices pulled away from rental rates and then dropped below rents about the same time that the market really crashed. Keep in mind the graph is showing growth rates (from the 1980 base line), not actual rental numbers. Although this graph isn't perfect I do believe it shows a simple view of relative demand towards purchases and rentals. Before the crash we were seeing serious demand for purchases and now we are witnessing demand for rentals.  As mentioned in my last rental post, demand for rentals could not be higher in Greenwich.  I'm a big believer that this is due to the cyclical nature of everyone needing housing for their family before the school year combined with the lack of financing ability in those that wanted to buy, but couldn't.  Some agents don't agree with my strong belief in my school-time-demand - regardless, we are witnessing unprecedented demand in rentals right now. At some point it will even out with home values, which means either rental rates will come down or values will come back up.  If you know the answer, please tell me...

Greenwich CT (& National) RENTALS

I went to a presentation not too long ago by Lawrence Yun, Ph.D (Chief Economist of the National Association of Realtors) on the state of the housing market and how it might apply to Greenwich CT real estate.  I wrote up a little summary on this a couple weeks ago that yo can find here. One of the charts I found interesting was this one:This chart shows the relative increase in price of real estate and cost to rent since 1980 for the nation. As you can see, up until approximately 2002 both rentals rates and cost of real estate grew as extremely similar rates. At this point home prices sky rocketd and rental rates continued its normal growth.  If I had this charge for just Greenwich, CT I'd be willing to bet the numbers and growth patterns would be extremely similar.  The problem with analyzing Greenwich real estate and Greenwich rentals is that there simply isn't enough data to do a proper macro-level analysis.

Looking at the past 10 years we can see how home prices pulled away from rental rates and then dropped below rents about the same time that the market really crashed. Keep in mind the graph is showing growth rates (from the 1980 base line), not actual rental numbers. Although this graph isn't perfect I do believe it shows a simple view of relative demand towards purchases and rentals. Before the crash we were seeing serious demand for purchases and now we are witnessing demand for rentals.  As mentioned in my last rental post, demand for rentals could not be higher in Greenwich.  I'm a big believer that this is due to the cyclical nature of everyone needing housing for their family before the school year combined with the lack of financing ability in those that wanted to buy, but couldn't.  Some agents don't agree with my strong belief in my school-time-demand - regardless, we are witnessing unprecedented demand in rentals right now. At some point it will even out with home values, which means either rental rates will come down or values will come back up.  If you know the answer, please tell me...