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
Millennials will shape the future of your rental business and here’s why:
The millennial generation, or Generation Y, is the generation born in the 80’s and 90’s and they make up about one-third of the population. As a millennial myself, I can tell you we grew up during the birth of technology and we’re generally known as the ‘on-demand’ generation. Meaning we want what we want, and we want it now.
Millennials are coming of age when it was once thought purchasing a home defined the “American Dream” but that’s seemingly not the case for my generation. A recent report by the National Association of Realtors (NAR) suggests that the number of first-time homebuyers has reached its lowest level since 1987!
So what does this mean for your property management business and why is it important? It means we’re not buying our first home until much later in life and as a result, we’re taking the rental market by storm.
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?
Allow me to paint you a picture: It’s a hot summer afternoon and you have just shown up at your rental property to complete a final inspection after your last renter moved out. As you are walking up, you notice they have left some trash behind.
This is a little concerning but they paid the rent on-time every month, so no issues are to be anticipated right? Guess again! Upon entering the home, the stench is almost unbearable! As you turn the corner you have just been greeted by a sink full of roaches and a scene of absolute filth.
What is one to do?
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.