Rate hike pushes used home rentals

In 2023, the prices of new housing have had a strong escalation due to the increase in construction materials, the rise in freight prices and the increase in the minimum wage. In this way, investors looking for a refuge for their capital have found a way out in used housing.

(Rents and transportation will keep inflation high.)

For Karina Reyes, president of Fedelonjas, This exit can be effective, since the sale price of used housing during 2022 grew by 7.7%.

“This partially isolates the negative effect of today’s high interest rates and is the result of investors seeking refuge so as not to lose purchasing power, since real estate has proven to be the safest and most stable option over the years” , the guild leader said.

At the same time, he highlighted that the sale of used housing presents a lower participation rate by financial intermediaries, that is, it is bought with less mortgage credit, in contrast to what is registered in the new one.

(Rents: they are going up by less than what is authorized by law).

Added to this is the high demand for rental housing this year, which will increase the occupancy level of the properties.

For the leader Reyes, this happens due to factors such as the possibility of remote work that has allowed households to return to hometowns such as the metropolitan areas of Barranquilla, Bucaramanga and Medellín. This dynamic increases the demand for rentals in strata 3 and 4 and, therefore, the interest of investors who want to buy because they are looking for rent.

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