Rentals Heat Up

Economic uncertainty and the high numbers of foreclosures are causing rental properties to become a hot commodity.

Minneapolis vacancy rates were at an incredibly low 2.5% in Minneapolis in Q4 of 2011 while nationwide rents went up 0.4% in Q4 and have gone up around 2% for all 2011.

Investors including some that normally finance and build other types of buildings have jumped into the apartment building fray leading to some speculation of a pending oversupply.

Add to this the federal government with a glut of Fannie Mae and Freddie Mac foreclosures. Some are calling for the federal government to rent these homes rather than continue to sell them which is driving down prices.