Identifying your local renter demographics first is important to keep your rental property leased. Single-family rental households are expected to increase by roughly 8,000,000 between 2018 and 2030, as stated by the National Multifamily Housing Council. Property owners and managers who want to keep up with growing demand will need to identify and meet the requirements of their target market and what they’re searching for in a rental home.
Most Likely to Rent – All Property Types
People in middle age and older the most likely demographic to rent a home. This holds accuracy in almost all of the nation’s marketplaces. As mentioned by recent research by Harvard University’s Joint Center for Housing Studies, 78 percent of all households under the age of 25 are renters. This is partly because many young people are at a time of life marked by increased mobility, more flexible employment tenure, and shifting relationships. At the present time, obtaining a property is not easy and affordable, so renting typically makes more sense.
While young adults tend to dominate the rental market, renters of all ages are present in substantial numbers. According to the same report, two-thirds of those aged 25 to 30 still rent their homes, while one-third of people over 40 and one-fifth of people over 55 do not. While not all people opt to rent, an increasing proportion have done so in recent years. Renting is commonly chosen by older folks who do not want the inconvenience of home maintenance or the financial hazards associated with a fluctuating housing market.
Most Likely to Rent Single-Family Homes
Evidently, individuals of all ages rent homes, and the age range of the most prevalent renter demographic might change according to where you reside. It is also clear that specific types of rental properties are in higher demand in some places than others. For illustration, single-family rental homes outweigh all other types of rental properties in the West and South, whereas the East and, to a lesser extent, the Midwest has a greater concentration of multifamily rental properties.
Rental property owners should be aware of the most in-demand types of rental property in their area, including the age ranges of their target market. Most people who rent a single-family home do so because they seek additional space, prefer a yard for their furry family members, or want to educate their kids in a suburban environment. Your single-family rental property, however, may still be in demand among elderly or young single professionals in college towns, popular retirement groups, and similarly unique areas. Therefore, keeping your rental property rented requires an intimate familiarity with the wants and demands of your target demographic.
Knowing your local renter demographic is critical, but it can be challenging if your rental property is in a distant or expanding area. If this is your situation, it may be wise to enlist a local rental market expert to help you successfully plan and advertise your rental property. At Real Property Management, we have the knowledge and skills needed to help you determine your objective market and guarantee your rental property is leased to qualified tenants. Contact your local Real Property Management office to learn more.
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