With inflation currently at a 40 year high, and rising costs across the board, it’s easy to see that inflation will affect the rental market because it’s affecting most businesses across the Central Valley.
In this article, we will break down exactly how inflation will affect the local rental market and we will offer you tips on what to expect from the rental market in the next 6-12 months.
With gas pricing continuing to increase, landlords will be charged more for fuel costs because contractors, service companies, and other companies will be charging more to come out to rental properties.
Besides rising fuel costs, landlords will also be faced with longer wait times to get the parts that they need and more expensive parts as a whole due to supply chain problems.
Taxes And Insurance
Even though we’re experiencing inflation, property values are also increasing as well and this means that landlords are also paying more to insure their rental properties.
What To Expect In The Coming 6-12 Months
With inflation being here to stay, potentially for the next 12 months or longer, some landlords may likely be cutting services and delaying repairs or improvements at their rental properties just so they can avoid raising rents.
Higher property taxes and insurance may also mean that more people postpone their decision to buy real estate and stay in the Central Valley rental market, potentially rising rents even more.
Contact RPM Central Valley
At RPM Central Valley, we specialize in single-family and multifamily property management for the Central Valley area.
To learn more about the property management services we can offer you, contact us today by calling (209) 572-2222 or click here to connect with us online.