By Nef Cortez
I have reported on home values rising fast in Diamond Bar. Today, wetake a look at how fast rents are increasing as well.
Home values typically follow the pattern of economic recessions, with prices increasing as the economy improves, and peaking at about the same time or slightly after the economy has reached its zenith. Rents, however, appear to be immune to the rise and fall or cyclical nature of home prices or home values. The predictable thing about home rental values is that over the years, they have consistently trended upward.
As an example, where home values took a dive of almost 30-40% during the Great Recession, rents maintained a level or flat trendline. Since the end of the Great Recession in 2009, property values across the United States have come roaring back to their current heights. The median sales price of a Diamond Bar single family residence (SFR) in the First quarter of 2018 reached a level of $735,000. That represented an increase of 56% from the median sales price of $470,000.00 in the first quarter of 2010.
The Diamond Bar median rental rate for a Single FamilyResidence (detached) in the first quarter of 2018 stood at $2,860.00. This represented an increase of 30% from the median rental rate of $2,200.00 where it was in the middle of the aftermath of the Great Recession. This represents an increase of $660.00 per month, which is not an insignificant number, but it is not the “stratospheric” increase seen in the single family resale market values. The rate of increase of rentals (30%) in the same period has been almost half of what the rate of the median price increase of homes values (56%) from 2010 to 2018.
Next week we will look at the Diamond Bar Townhome and Condominium rental market, and the comparison of rental for that type of property to the single family residential (detached).
This article was written by Nef Cortez who is a licensed Real Estate Broker, Ca BRE # 00560181, licensed since 1976. He can be reached for more information via e-mail at firstname.lastname@example.org, or website www.nefcortez.com. Please feel free to email any questions regarding real estate.