I posted this blog in 2013, and re-blogged early in 2014. It is now Labor day, 2014, and the predicted rental glut has become a reality. I doubt that you had been reading about this possibility earlier in the year.
Here is a summary: There are now 28 active rental listings in the Reston Town Center from individual owners trying to rent their units. In addition, there are unknown vacancies and rental specials being offered in major competing rental buildings: The Metropolitan; The Avant; and the upcoming Harrison (under construction, but taking applications).
There were 14 new listings put on the market in August. Thirteen (13) are still active. This in a market which used to absorb new rentals in days, not weeks or months.
There are ten (10) rental listings from July which are still on the market.
This is not a cause for extreme alarm for those who hold units in the RTC which they are looking to rent. However, it is beyond simply an early warning sign that rents will not only stabilize, but drop in the immediate future.
A number of potential sellers have approached me with the question: “Maybe I should just rent out my home instead.” There are multifaceted answers to this question which we should discuss, not the least of which is the slower absorption of rentals in the Reston Town Center.
I welcome any and all inquiries.
RAYMAX REAL ESTATE
Reston Town Center Housing: A Rental Glut?
This is a seller’s market, not a landlord’s market
*** This is an update of an article written one year ago. It was true then; it is more appropriate today.
Background – We have been in a strong seller’s market in most of the Reston Town Center for 2 – 3 years now. Supply of homes for sales has been tight, demand high, and listings generally get absorbed quickly. Unfortunately, in many cases, one must question whether the listing prices were too low.
For many years, many homeowners have chosen to rent their homes rather than sell. The sound logic behind this was that rentals were relatively scarce in the Reston Town Center area, and supply was easily absorbed. So it made sense to ride out a period of low prices by renting one’s residence.
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