How Rent Rates Affect the Mortgage Industry | What Rising Rents Mean for Mortgage Brokers

Home | Our Blog | Rising Rents Set to Drive the Housing Market in 2020: What It Means for Mortgage Brokers

March 17, 2020 | By RGR Marketing Blog

When It’s More Expensive to Rent Than Own, It’s Good News for Mortgage Brokers

Since June of 2019, the national rent index has remained relatively stable. In fact, the index increased by only 0.1 percent from November to December, with 2019’s total year-over-year growth coming in at just 1.4 percent. This tally is lower than the annual increases for inflation and average wages, and the lowest percentage of growth since 2015-2016.

But this stability is expected to be short-lived, with many experts predicting rent rates to rise substantially in 2020. The severity of the increase will vary depending on location, but on average, most rental markets will see considerable increases this year.

So, what does this prediction mean for mortgage brokers?

Rising Rents Will Push Many Out of the Market

Despite home prices climbing over the last two years, in many cities across the country, houses are still priced an average of 30 percent below their peak values. Coupled with rising rent rates, this will make it more affordable to buy a home than rent one in 2020.

With more and more renters being forced out of the rental market, mortgage brokers should expect a higher than usual number of mortgage loan applicants this year.

Which Markets Will Be Most Impacted by Higher Rents?

The western half of the United States is where rent rates are predicted to rise the most, mainly since several markets experienced dramatically high increases in 2019, despite the national trend of stability. The top two cities with the highest year-over-year rent growth for last year were Mesa, Arizona with an increase of 5.1 percent; and Henderson, Nevada, which had a 4.3 percent increase.

Other cities with rent increases substantially higher than the national average included:

Phoenix, AZ
Colorado Springs, CO
Las Vegas, NV
Austin, TX
Nashville, TC
Charlotte, NC
Anaheim, CA
Stockton, CA

What sets these markets apart from much of the rest of the country is that they each boast growing local economies with plenty of employment opportunities. Most of the cities on this list are also smaller, inland cities where housing has long been considered more affordable than coastal areas.

However, with rent growth occurring at such a rapid pace, affordable housing is becoming less easy to secure for those looking to rent. As a result, mortgage brokers in these and other areas like them should be able to take advantage of the rent trends and convert more renters into buyers.

Purchase Mortgage Leads You Can Trust From RGR Marketing

In many housing markets across the country, 2020 is going to be a profitable year for mortgage brokers, if for no other reason than so many people are simply being priced out of the rental market. Stay on top of the traffic and keep your sales funnel filled with qualified mortgage leads from RGR Marketing. Our mortgage leads are pre-verified for accuracy, so they’re primed and ready for your sales team to convert.

With more than 20 years of experience providing mortgage brokers with the leads they need to grow and succeed, we’re who the professionals turn to for quality leads to help grow their businesses. And, we can help your business grow too. In 2020, give our mortgage leads a try and see the difference our quality and commitment make.

There’s no easier, more affordable and more effective way to increase your mortgage prospects than by purchasing mortgage leads from RGR Marketing. We can provide you with exclusive access to the high-quality leads that truly make a difference in your profit potential this year.

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When It’s More Expensive to Rent Than Own, It’s Good News for Mortgage Brokers

Rising Rents Will Push Many Out of the Market

Which Markets Will Be Most Impacted by Higher Rents?

Purchase Mortgage Leads You Can Trust From RGR Marketing

Start making more
money today!

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When It’s More Expensive to Rent Than Own, It’s Good News for Mortgage Brokers

Rising Rents Will Push Many Out of the Market

Which Markets Will Be Most Impacted by Higher Rents?

Purchase Mortgage Leads You Can Trust From RGR Marketing

Start making more money today!

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