As people become more mobile and experience more change of jobs it has created a trending preference of renting over buying and this is good news for Coeur d’Alene investment property owner. In fact, the National Association of Realtors estimates 5 million new households of renters to emerge in the next ten years. The eruption of new rental households is millennials desire to have the option of being mobile or having a sudden career or job shifts.
It’s an Investors Market
According to a recent national renters survey, renters are committing to their rental properties long-term. The survey shows the percentage of single-family home property renters committing to their rental properties for more than 5 years is 22%, 3-5 years is 14%, and those at least 2 years is 59%.
These figures show on average that 25 percent of single-family home renters plan to stay put for more than five years. This trend impacts the Coeur d’Alene investor market through lower vacancy rates and more stable tenants, which save rental investors on the stressful and often costly move-out, turn over the process.
The Rental Life for Me
The millennial generation often tends to experience life in a different way than previous generations and often means putting off settling into a long term commitment like a home mortgage for a long time. Owning a home is no different, as 60 percent of those surveyed said they don’t plan on purchasing a home of their own in the next five years!
When asked why they did not foresee homeownership in the near distant future, respondent answers were divided into three reasons:
- 29% said they are unable to attain a mortgage
- 33% didn’t want to be tied down and burdened by homeownership
- 42% said they just enjoy the freedom and mobility that comes with renting
Featuring a Great Lifestyle
The survey also revealed renters top priorities in deciding where to rent, and results were pretty consistent in past years.
- Proximity to good schools (84%)
- Safe neighborhoods (97%)
- Proximity to parks (71%)
- Access to a community center (64%)
- Friendly neighborhood (94%)
With this explosive growth in the rental market and the rising rent rates nationwide, the Coeur d’Alene property management industry is growing as well. And capitalizing on this growing market is the smart business but needs to be handled smartly. If you are in need of assistance to manage your rental properties, contact the leader in Coeur d’Alene rental at Real Property Management Coeur d’Alene property management!