It’s not just caused by inflation, its high demand caused by fewer investors acquiring homes in Roswell. That’s likely because fewer homeowners are selling. People aren’t selling because home prices have also skyrocketed, just in the last two years.
Homeowners are not selling because there is no place for them to go if they want to buy in Roswell, Georgia. While rental and sale prices have been steadily climbing, wages have been pretty flat. It is still true today that when move-up people buy, they will buy a home about 50% more expensive than the one they are selling. These days, the delta is not as significant as it once was. To get a substantially improved position buyers have to spend more. It’s likely that they either don’t qualify for the higher price or it’s just outside of their reasonable budget.
The bottom line for Roswell, Georgia renters is that there are fewer and fewer homes available to rent and the prices are becoming unaffordable for most of the renting class. I noted on a recent search in Roswell, Georgia that the lowest price single family home rental that I could find was $1,650 per month. The least expensive single family attached (condo or townhouse) was $1,200 per month.
At these prices, to financially qualify for the entry level rental home, an applicant would need to earn about $55,000 per year. This is more than what most of the unskilled labor force in Roswell earns. This creates a real problem for the city because the labor force cannot afford to live in the city. That means they have to commute from outside the city. This discourages workers. Dealing with rush hour traffic directly affects quality of life. This worries employers because they experience rapid employee turnover. Turnover is expensive for the employer because the new hires have to be trained. This costs both time and money.
It’s not only employers like restaurateurs but even public sector jobs like firefighters and police. Those men and women that serve our community for safety sake cannot even afford to live here. That’s a real and growing economic problem.
If you are a landlord owning a home in Roswell, Georgia, you might want to hang on to what you have. Replacing a Roswell investment property is going to be difficult at best.
Please give 3 Options Realty a call and we can discuss any investment objectives you may have - 678-397-1282.
Daniel R. Wilhelm
3 Options Realty, LLC.
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We use professional market research to determine fair-market rent, and we use broad market advertising to reach a large audience. Our agents will also help you prepare your property and skillfully present your property. Prospective tenants will undergo comprehensive interviews and background screening before we negotiate with them the rental agreement using our proprietary, attorney-reviewed forms.