Identifying your local renter demographics is the first stage to keep your rental property leased. Single-family rental households are predicted to increase by nearly eight million between 2018 and 2030, according to the National Multifamily Housing Council. In order to keep up with rising demand, property owners and managers need to identify 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 holds true in nearly all markets across the country. As per 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 is due in part to the fact that numerous young people are experiencing increasing mobility, more flexible employment tenure, and changing relationships. Since purchasing a home now can be difficult and expensive, renting is often a better option.
Though young adults have taken over the rental market, renters of all ages are increasingly turning to renting. According to the same study, two-thirds of those aged 25 to 30 still rent their homes, whereas one-third of people over 40 and one-fifth of people over 55 do not. However, there has been an increase in the number of people who opt to rent rather than buy in recent years. Renting is a popular choice among older people because it eliminates the need to deal with the hassle of home maintenance or the financial risk associated with a fluctuating housing market.
Most Likely to Rent Single-Family Homes
It was clear that people of all ages rent homes, and the age range of the most prevalent renter demographic may change depending on your region. It is also true that certain types of rental properties are in demand in some areas than others. For example, Single-family rentals are the most common types of rental properties in the West and South. On the other hand, multifamily rental properties prevail in the East and, to a lesser extent, in the Midwest.
Therefore, rental property owners need to consider the most in-demand types of rental property in their location, along with the age ranges of their target market. Most people who rent a single-family home do so because they want more space, a yard for their animals, or want to raise their kids in a suburban setting. However, your single-family rental property may still find a market among retirees or young single people in college towns, famous retirement communities, and other unique areas. Due to this, knowing your target demographic’s requirements is important to keep your rental property rented.
Although necessary, understanding your local renter demographic can be difficult, mainly if your rental property is in a remote or developing area. When this is the case, enlisting a local rental market expert to assist you in properly planning and marketing your rental property can be beneficial. Real Property Management has the experience and skills to assist you in knowing your target market and ensuring that your rental property is leased to qualified tenants. Contact your local Real Property Management office for more information.
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