You need to identify your local renter demographics to keep your rental property leased. According to the National Multifamily Housing Council, there is a projected growth of about eight million single-family rental households from 2018 to 2030. Property owners and managers must comprehensively understand their target market and what they’re searching for in a rental home to keep up with this demand.
Most Likely to Rent – All Property Types
Young adults are the most likely demographic to rent a home. This observation is relevant to nearly all markets nationwide. According to recent research by Harvard University’s Joint Center for Housing Studies, 78 percent of all households under the age of 25 rent their homes. This can be attributed to the transitional phase of young people characterized by increased mobility, flexible job tenures, and shifting relationships. Renting is currently a more sensible option due to the property owner’s difficulties and high costs.
Renters of all ages are prevalent substantially, although young adults frequently dominate the rental market. The same survey states that a higher proportion of individuals aged 25 to 30 (two-thirds) still rent their homes compared to those aged over 40 (one-third) and over 55 (one-fifth) do not. While not generally adopted, there has been a notable increase in the number of individuals opting to rent in recent times. Some elderly individuals choose to rent instead of owning a home due to their desire to avoid the burdens of home maintenance and the uncertainties associated with a fluctuating housing market.
Most Likely to Rent Single-Family Homes
It is obvious that people of all ages rent homes, and contingent on where you live, the age range of the most prevalent renter demographic may fluctuate. It is also true that certain types of rental properties are in higher demand in some places compared to others. For instance, single-family rental houses are particularly prevalent in the West and South, surpassing other types of rental properties. On the other hand, multifamily rental properties are more common in the East and, to a lesser extent, the Midwest.
This entails that rental property owners should be aware of the most in-demand types of rental property in their locality, as well as the age ranges of their target market. Numerous people who rent a single-family home do so out of needing an additional room, the requirement of a yard for their pets, or the preference to raise their children in a suburban community. In certain locations such as college towns, popular retirement communities, and other unique areas, single-family rental properties can remain attractive choices for both seniors and young individuals. Understanding the needs and preferences of your target demographic is crucial to keep your rental property rented.
Even though it’s vital, knowing your local renter demographic can be time-consuming and difficult, particularly if your rental property is located in a remote or developing location. In order to effectively prepare and market your rental property under these circumstances, it may be advantageous to enlist a local rental market expert to assist you. Real Property Management possesses the necessary expertise and capabilities to aid in the identification of your target market and ensure that your rental property is leased to qualified tenants. Contact your local Real Property Management office for extra details.
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