To keep your rental property leased, you have to initially identify your local renter demographics. The National Multifamily Housing Council anticipates that between 2018 and 2030, the number of single-family rental households will rise by almost eight million. To keep up with this demand, property owners and managers need to be aware of who their target market is 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. Nearly all markets around the nation are able to testify to this. Recent research by Harvard University’s Joint Center for Housing Studies found that 78% of all households under the age of 25 rent their homes. This is partly due to the fact that a large portion of young people are going through a stage of life characterized by increased mobility, more flexible employment tenure, and shifting relationships. Buying a property can be tricky and costly at this point, so renting is usually the better option.
Even though young adults typically dominate the rental market, renters of all ages are present in substantial numbers. Two-thirds of those between the ages 25 to 30 are still renting their homes, compared to only one-third of persons over the age of 40 and one-fifth of people over 55. Although not everyone chooses to rent, a greater percentage has done so recently. Older people who do not want the hassle of home maintenance or the financial threats associated with a fluctuating housing market frequently opt to rent.
Most Likely to Rent Single-Family Homes
Of course, people of all ages rent homes, and depending on where you live, the age range of the most prevalent renter demographic may vary. It is also true that some places have a greater demand than others for specific types of rental properties. For instance, Single-family rental homes dominate all other types of rental properties in the West and South, whereas multifamily rental properties predominate in the East and, to a lesser extent, the Midwest.
This implies that rental property owners should be mindful of the most in-demand types of rental property in their locale, as well as the age ranges of their target market. Most people who rent a single-family home do it for one of three reasons: they need more space, want a yard for their pets, or choose to raise their kids in a suburban setting. Nevertheless, in college towns, popular retirement neighborhoods, and similarly unique regions, your single-family rental property may still be an appealing option for seniors or young single people. Thus, recognizing the needs and interests of your target demographic is vital to keep your rental property rented.
Understanding your local renter demographic is crucial, but it may occasionally be difficult, mainly if your rental property is in a far away or growing area. In such circumstances, it may be useful to enlist a local rental market expert to assist you in efficiently getting ready and marketing your rental property. We at Real Property Management have the knowledge and skills required to assist with determining your target market and guaranteeing that your rental property is leased to qualified tenants. Contact your local Real Property Management office to discover more.
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