To keep your rental property leased, you need to first identify your local renter demographics. Between 2018 and 2030, the National Multifamily Housing Council anticipates an increase of eight million single-family rental households. Property owners and managers who want to keep up with increasing demand will need to know and meet the needs of 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 particularly the case in almost every market across the country. Recent research from Harvard University’s Joint Center for Housing Studies shows that renting is the norm for households under the age of 25. One reason is that many young people are currently at a phase of life characterized by increased mobility, shorter career stability periods, and frequent relationship changes. At this point, renting can be a more realistic option than buying due to the challenge and expense of house ownership.
Although young adults represent a sizable portion of the rental market, there are significant numbers of renters of all ages. According to the same survey, while one-third of people over 40 and one-fifth of people over 55 do not currently rent their homes, two-thirds of those aged 25 to 30 still rent their homes. The proportion of people who choose to buy over rent has been declining over the recent years. Retirees who do not want to deal with home maintenance or the financial hazards associated with a fluctuating housing market often choose to rent instead.
Most Likely to Rent Single-Family Homes
It is obvious that people of all ages rent homes, and the age range of the most prevalent renter demographic can vary by area. It is also true that some areas have greater demands for particular types of rental properties. For instance, in the West and South, single-family rental homes far outnumber any other types of rental properties. But in the East and, to a lesser extent, the Midwest, you’ll find a lot more multifamily rental property.
This implies that rental property owners need to be familiar with the most in-demand types of rental property in their area, as well as the age ranges of their target market. Most people who rent a single-family home do so because they’re searching for more space, want a yard for their pets, or plan to raise their children in a suburban atmosphere. Your single-family rental property, however, may still be marketable among retirees or young single individuals in college towns, popular retirement communities, and similarly unique areas. Therefore, understanding the needs and wants of your target demographic is important to keep your rental property rented.
Understanding your local renter demographic is important, but it can be difficult if your rental property is located in a remote or developing area. If this is the scenario, it can be helpful to enlist a local rental market expert to help you efficiently prepare and market your rental property. At Real Property Management, we have the experience and knowledge to help you classify your target market and ensure your rental property is leased to qualified tenants. Contact your local Real Property Management office to learn more.
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