Housing slump leads to rental boom
YOUNGSTOWN, Ohio- More houses are up for rent in the Valley than ever before, as potential sellers look to earn money while they wait for the housing market to recover.
Realtor Charles Zidian of Zidian and Associates said there is a gap between what banks are willing to lend and what potential buyers can afford which has led to the rental trend.
"Over the course of the year, probably over 30 homes, 40 homes that we've leased because of not being able to sell," Zidian said.
He said falling prices and tight credit have made buying a house less affordable than in recent years.
"You have certain price range homes where financing becomes difficult for people to attain financing on the properties and they just decide to rent them out," he said.
In addition to offsetting the struggling market, realtor David Zamarelli said another benefit is that the houses are not left vacant.
"They want to keep the utilities going, the house seems to deteriorate a little more when it's vacant. You always run the risk of somebody breaking in or vandalizing the home so you keep it occupied," Zamarelli said.
He said renting out houses is more work than people may realize.
"From the beginning phase to screening the tenant, perspective tenant, and seeing where they come from, verifying their job, that kind of thing," he said.