…Two significant drivers of rental demand
over the past year have been the tight
lending conditions and the improving local
economy, namely employment levels.
Perhaps the most consequential factor
to date has been the tight mortgage
underwriting standards. Banks remain
risk-adverse, and lending standards
have yet to ease since the fall of Lehman
Brothers. This has held many would-be
buyers in the rental market, especially
with mortgage rates continuing to fall and
reaching record-low levels throughout
most of 2012. However, falling mortgage
rates have made lenders even more
adverse to risk. This lower tenant mobility
has tightened the conditions of the rental
market, laying the pressure on rents…