First, you have to identify your local renter demographics if you want to keep your rental property leased. According to the National Multifamily Housing Council projections, the number of people renting single-family homes is expected to increase by nearly eight million between the years 2018 and 2030. To stay up with this demand, property owners and managers need to have a solid understanding of their target market and what they are searching for in a rental home.
Most Likely to Rent – All Property Types
Young adults are the most likely demographic to rent a home. This is the case in the vast majority of the markets across the country. Recent research by Harvard University’s Joint Center for Housing Studies reported that seventy-eight percent of all households under the age of 25 rent their homes. This is due, in part, to the fact that several young people are currently in a stage of life that is marked by increased mobility, more flexible employment tenure, and shifting relationships. At this point, buying a house can be difficult and expensive, and renting is often the better financial and logistical choice.
Although the rental market tends to be controlled by young adults, renters of all ages are present in substantial numbers. According to the same survey, two-thirds of those aged 25 to 30 still rent their homes, while one-third of people over 40 and one-fifth of people over 55 do not. Even though not everyone chooses to rent a home, the percentage of people who do so has grown over the past years. Renting is typically selected by older folks who do not want the difficulty of home maintenance or the financial hazards associated with a fluctuating housing market.
Most Likely to Rent Single-Family Homes
It should come as no surprise that people of all ages rent homes, and the age range of the most prevalent renter demographic may shift contingent on where you live. It is also true that some types of rental properties are in more need in certain locations than others. For example, Single-family rental homes surpass all other types of rental properties in the West and South, whereas multifamily rental properties prevail in the East and, to a lesser level, the Midwest.
This indicates that rental property owners need to be aware of the most in-demand types of rental property in their region, as well as the age ranges of their target market. Most people who rent a single-family home do so for one of three reasons: they require additional space, want a yard for their animals, or wish to bring up their children in a suburban setting. However, in college towns, prominent retirement communities, and similarly unique areas, your single-family rental property may still be a viable option for seniors or young folks living alone. As a result, it is essential to have a solid awareness of the requirements and preferences of your target demographic to keep your rental property rented.
Understanding your local renter demographic can be difficult at times, despite the fact that it is very important. This is especially true if your rental property is in a distant or developing area. In cases like this, it is advisable to enlist a local rental market expert to help you successfully prepare and market your rental property. At Real Property Management, we have the experience and expertise necessary to help you understand your target market and make sure your rental property is leased to qualified tenants. Contact your local Real Property Management office to learn more.
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