There have been, and will continue to be, some big changes in the 2018 rental market. It’s important to understand the changes, meet owner and renter expectations and create a strategy.
It’s expected three specific groups will show high demand in rentals in 2018.
Young Millenials; those who are just old enough to start renting
Older Millenials; who are saving up for a down payment for a home
Older Baby Boomers; who are looking to downsize
Rental analysis shows that dramatic rental increases will slow down for higher end properties. However there will be a steady increase for the low to mid-range home. Currently, there are fewer houses for sale among bottom- and middle-tier homes, which are the most affordable to new home buyers. Single-family rentals are also concentrated in the bottom tier, and activity there has increased in the past decade. This is key for landlords and investors looking for what will have the best ROI.
Rent growth, while remaining steady since 2012, is speeding up again. In general, keeping rent increase to 2-3% is favorable. Any higher and they outpace income increases. In fact, the areas where rents are increasing the most are those with good, high-earning jobs coming in.
Are you the landlord who will benefit from this rental shift?