To keep your rental property leased, you need to first identify your local renter demographics. According to the National Multifamily Housing Council, single-family rental households are expected to grow by nearly eight million between 2018 and 2030. To keep up with increasing demand, property owners and managers must first determine their target market and what they’re searching for in a rental home.
Most Likely to Rent – All Property Types
Young adults are the most likely demographic to rent a home. This is valid in nearly all markets across the country. Based on recent research by Harvard University’s Joint Center for Housing Studies, 78 percent of all households under the age of 25 rent their houses. This is due in part to the fact that numerous young people are experiencing increasing mobility, more flexible employment tenure, and changing relationships. Nowadays, acquiring a home can be challenging and costly, so renting usually makes more sense.
Though young adults tend to rule the rental market, renters of all ages are prevalent. Based on the same research, two-thirds of those aged 25 to 30 still rent their homes, whereas one-third of people over 40 and one-fifth of people over 55 do not. While only some choose to rent, a rising number has occurred in the past few years. Renting is frequently selected by elderly people who do not want the hassle of home maintenance or the financial risk connected with a fluctuating housing market.
Most Likely to Rent Single-Family Homes
It was evident that people of all ages rent homes, and the age range of the most prevalent renter demographic may change based on where you reside. It is also true that certain types of rental properties are more popular in some areas than others. For instance, Single-family rental homes dominate all other types of rental properties in the West and South. In contrast, multifamily rental properties prevail in the East and, to some degree, in the Midwest.
This indicates that rental property owners should be mindful of the most in-demand types of rental property in their location, along with the age ranges of their target market. The majority of people who rent a single-family home do so because they need more space, like a yard for their pets, or desire to raise their kids in a residential setting. However, your single-family rental property may still be attractive for seniors or young single people in college towns, famous retirement neighborhoods, and other unique areas. For this reason, knowing your target demographic’s requirements is essential to keep your rental property rented.
Knowing your local renter demographic can be difficult, mainly if your rental property is in a remote or developing location. In such cases, enlisting a local rental market expert to assist you in properly preparing and marketing your rental property can be advantageous. Real Property Management has the knowledge and ability to assist you in understanding your target market and ensuring that your rental property is leased to qualified tenants. Contact your local Real Property Management office for more information.
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