Rent prices may go ‘even higher’ amid rate hike: ‘Million Dollar Listing’ broker
New York sees a shortage of housing inventory in ‘prime neighborhoods,’ real estate agent warns
‘Million Dollar Listing’ broker: Rent in housing market may go ‘even higher’ amid rate hike
Real estate adviser Kirsten Jordan discusses how raising rates with low vacancies are impacting the housing market.
"Million Dollar Listing" broker Kirsten Jordan sounded the alarm over the red-hot housing market warning that rent prices may go "even higher" as rates continue to soar.
"It's actually the first time we've ever seen rates go up when there's so low vacancy," the real estate agent told "Mornings with Maria," Tuesday.
"The impact of low vacancy when you raise rates is that traditionally, [when] you raise rates, home prices come down and the rents go steadily upwards."
US RENT PRICES REACH RECORD HIGHS AS BUYERS PUSHED OUT OF MARKET
Jordan went on to say since supply is low and demand is high in the housing market, homebuyers may have a more difficult time purchasing a house since the rate hike could cause an "additional lack of affordability" and rents to go "even higher."
‘Million Dollar Listing’ broker on housing inventory shortage, soaring mortgage rates
Real estate adviser Kirsten Jordan provides insight into rising mortgage rates in the housing market.
With inflation at a 40-year-high and mortgage rates topping 5%, it’s become a nerve-wracking time for Americans who are looking to buy a home.
When FOX Business host Maria Bartiromo asked Jordan how long it would take for the housing market cycle to replenish inventory, she responded: Product should be "hitting the market" between six and 18 months from now.
‘Million Dollar Listing’ broker told FOX Business that New York is seeing a "real shortage" of housing inventory. (iStock)
Although there’s a bit more of "an opportunity on the horizon" for potential homebuyers, the real estate agent noted places like New York City may take "a lot longer for property to hit the pipeline."
"[New York City] has a lot more regulations. It takes a lot longer for us to be able to build and offer to the public," Jordan explained. "I'm seeing a really, really big… kind of sway in where we're going to see that product."
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The "Million Dollar Listing" broker said homebuyers will see more housing inventory in the Sand States, California, Florida, Arizona, and Nevada, where there’s more "rural ability" at a lower cost.