In 2014 the Rental Housing market grew an annual pace of 3.3%, with occupancy rates at 95% (according to MPF Research)
If you’re looking to grow your rental portfolio in 2015, where should you start? Among the most obvious places would be the best performing rental markets of 2014! Last year was a surprisingly strong market for growth among rental housing throughout out the entire US, growing an an annual pace of 3.3 percent with occupancy at 95%.
Below are the top 10 markets in the United States, as measured by annual rent growth percentage (annual rent growth equals “effective rent” in this case).
Millennials are the future of Real Estate and will drive growth starting in 2015
Realtor.com’s chief economist Jonathan Smoke is launching his first annual forecast, and in an industry crowded with analysis and economists throwing around numbers, he’s determined to stand out. The differences between what Smoke is doing and his slew of competitors – as well as his affiliated economists at the National Association of Realtors – comes down to the data he is looking at and what he’s doing with it.
And so here it is, Realtor.com’s first forecast.
1) Millennials will drive household formations
New data from Reis predicts the top 5 and bottom 5 metros for vacancy and rent increases in 2015
With the homeownership rate staying historically low, multifamily demand across the country remains high and rents are continuing to rise.
Asking rent is expected to increase an average of 3.3 percent nationwide next year, which is generally consistent with 2014 numbers, according to market-research firm Reis. This figure outstrips both overall inflation, projected to be between 1.6 percent and 2 percent, and salary increases, which Mercer forecasts at 3 percent. Continue reading
Calling all renters! If you’ll be searching for a new home in the next few months, I’m about to introduce you to your new secret weapon. Why will you need a secret weapon?
The rental market is really busy, which means the rules are changing. If you want to score a great home and avoid a lot of headache, there are a few facts you must know:
• There are more renters (read: competitors) than the last time you searched
• The best homes are rented to new tenants within a week after being listed
• Average applicants usually settle with a boring, average, or overpriced home
I’m a city renter myself, and I’m well aware of the frustrations and problems we face in the hunt for a new place. When you’re competing to rent a home that’s in great demand, you need more than the law of averages on your side.
• How do you stand apart from the other 20 people that also applied?
• How do you convey that you are the best possible tenant?
• How can you AVOID rental application hell & paying numerous application fees?
There is one easy answer for all of these questions: you need to stack the deck in your favor by being organized and standing out!
To stand out, you need a “Rental Resume”! Let me show why, and how it can drastically help you. Continue reading
There are few things that can unite humans around the world like sports. The World Cup, Super Bowl, and Olympics are some of mankind’s most celebrated and watched events. This isn’t a new phenomenon, and one only needs to look at the history of the Olympics for evidence.
The reasons that we unite behind sports are copious, but I’ll focus on my favorite: teamwork.
Implications of a disastrous monetary policy. (Part 2 of 2)
In my last post, I explored how rent prices could be affected by the latest Federal Reserve announcements. Judging by the amount of positive feedback I received via Facebook and email, I really hit a nerve!
While rent prices probably won’t increase drastically in the near term (1-2 years), they could be significantly affected within 5 years. Many different factors could spur this including: Increased credit standards for mortgages, decreased demand for buying a home, and inflation.
The truth is, there is no predictable or easy answer to how rent prices will fluctuate in the coming years. An economist is better suited to give answers on this complex subject.
Since I don’t have an Economics degree or Wharton MBA, I interviewed someone who does! Mr. Richard Finger is also a regular Forbes contributor and his work, in its entirety can be found here:
Implications of a disastrous monetary policy. (Part 1 of 2)
How would your life change if rent prices doubled next year?
The Federal Reserve (The Fed) makes monetary decisions that affect all of us by way of our purchasing power, and there is no escaping it. Any smart investor tries to predict future market trends to get an edge on the rest of the herd. Herein, I will help you do just that within the rental housing industry. Whether you’re a landlord or you rent your house, you will be affected!
If you’re a landlord, you’re in the business of making money. If you’re a renter, you probably want to save money to buy a house. If you don’t care about extra money, maybe you’ve found the wrong blog?
Life can be unfair, and sometimes the lesser man (or woman) wins. But not today.
Follow this proven plan to separate yourself from the other 95% of all renters (your competition)!
How can I stand above the competition you might ask? Hint: while your competition only turns in the completed paper application, you do something radically different.
In the summer of 2010, I was looking for a new house to rent. My place at the time was more suited for my college days as I had outgrown the weeknight partying lifestyle. In Baltimore county there were a ton of choices, from single family homes to 15th floor penthouses, and from city living to country living on windy roads. I did the normal searching on CraigsList and visited 6 houses, and eventually applied to 3 of those.