According to a recent market analysis, there are three main factors that are contributing to an optimistic outlook with regard to rentals.
Tightening rental markets
In an already tight market, vacancy rates have dropped from a rate of almost 11% in 2009 to a current rate of just below 6%. It’s expected that this decline will continue moving forward, which is good news for property managers.
Homeownership has dropped to its lowest level since the early ‘90s. Homeownership peaked in 2003 at just under 69%, but has dropped to its current rate of 64%. This is likely due to continued economic uncertainty and higher house prices, among other factors.
Improved job market
With a steadily declining unemployment rate and a stronger job market, more potential renters find themselves able to commit to leases. It also points to Millennials being able to move out of their parents’ homes and into their first rentals.
Because of all of these positive trends, it’s expected that rental properties will be able to raise their rental price points, which is more good news for property management companies. Enjoy the upswing!
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