Are you an investor or rental property owner who is worried about the future of your rentals? Is your worry about the risk and reward of a property rental? Well, here is some good news, you don’t have to be. The good news is that rental properties is a growing market
According to the Census Bureau, home ownership rates were reported at 63% at the end of 2015, which is a 20 year low for Americans, and even dropped a point from last year end report data. Also, more good news is that vacancy rates are decrease which the demand for renters is on the rise. In fact, Zillow reported that the average rent rates are on the rise. In addition the US had over 700,000 new renters in 2015 alone. With all this backing you can rest assured of the growing market in property rentals.
3 Factors Combined Lead to the “Roommate Effect”
High debts, high rent rates, and low incomes contribute to the growing market in something called the “the roommate effect.” Zillow also studied how the “roommate effect” will impact the rental market. Just like on popular sitcoms “The Golden Girls,” or “Friends,” or even “How I Met Your Mother,” adults today are doubling up in rental homes as a way to save money. In 2012, the number of American renters living with roommates or family members was over ⅓ of the adult population.
According to Stan Humphries, Chief Economist for Zillow.com, “All of these doubled-up households represent tremendous potential energy for the market. And when these compressed households begin to unwind and these millions of Americans do start to create their own households, demand will bounce back, possibly even causing household growth to outpace population growth.” A bright new future is coming in for property owners and investors alike.
A Growing Market
We now know that the rental market is secure and ready to be apart of. So if you have been questioning when is a good time to invest in rental property, the time is now. As the leader of property management companies Coeur d’Alene has to offer, Coeur d’Alene Real Property Management is here to help you as you grow your portfolio. We are dedicated and proud of the service we are able to provide and are hear to save you time and headache in dealing with your property. We offer solutions for every aspect of Coeur d’Alene property management, and are experts on the local Coeur d’Alene area. As you grow your investment portfolio, rest assured that the team at Real Property Management Coeur d’Alene are hear to make you successful.