Initially, you need to identify your local renter demographics to keep your rental property leased. The National Multifamily Housing Council anticipates that between 2018 and 2030, the number of people renting single-family homes will rise by roughly eight million. Property owners and managers who want to keep up with increasing demand must be deeply familiar with their target market and what they are searching for in a rental home.
Most Likely to Rent – All Property Types
People in the early stages of their lives are the most likely demographic to rent a home. This is particularly the case in several markets across the country. Recent research by Harvard University’s Joint Center for Housing Studies revealed that 78 percent of all households under the age of 25 rent their homes. Several young people are in a time of life characterized by higher mobility, more flexible employment tenure, and fluctuating relationships. Since purchasing a home has become more challenging and costly, renting is often the better financial and practical option.
Even though the rental market tends to be controlled by young adults, renters of all ages are present in substantial numbers. Two-thirds of those aged 25 to 30 still rent their homes, whereas one-third of those over 40 and one-fifth of people over 55 do so. While not all people opt to rent, an increasing proportion have done so in recent years. Renting is a common choice for retirees who do not want the burden of home maintenance or the financial hazards associated with a fluctuating housing market.
Most Likely to Rent Single-Family Homes
It is clear that people of all ages rent homes, and the age range of the most prevalent renter demographic may change contingent on where you live. It is also true that some types of rental properties have a greater need in some areas than others. For instance, single-family rental homes outnumber all other types of rental properties in the West and South, whereas multifamily rental properties prevail in the East and, to a lesser level, the Midwest.
This implies that rental property owners need to be knowledgeable of 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 for one of three reasons: the need for more room, the want to have a yard for pets, or the desire to raise their children in a suburban setting. For example, your single-family rental property may still find tenants among the elderly and the young who prefer to live independently in college towns and well-known retirement communities. Due to that, it is crucial to have a deep understanding of the needs and wants of your target demographic to keep your rental property rented.
It’s crucial to have a firm grasp of the local renter demographic, although doing so can be challenging at times. This is particularly true if your rental property is in a remote or developing area. If you’re in this situation, it is best to enlist a local rental market expert to help you successfully prepare and market your rental property. At Real Property Management, we have the skills and experience required to help you determine 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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