Are you up to date with changes to the Rental Market?
Rental properties are a great tool for getting in extra, steady income. But if you’re not paying attention, changes in market trends can sneak up on you.
Don’t worry, we’re here to help! Read on for important rental property facts and trends for the Richmond markets.
Rentals are a Growing Market
There are over 100 million renters in America. Between 2010 and 2018, the number of renters increased by 9.1 million.
And the share of renters now makes up 37 percent, which is the highest it’s been since 1965. In the past, the percentage of renters has fluctuated over the years. But, since the 2000s, it has seen consistent growth.
This means that it is currently the best time in the last 50 years to invest in rental properties.
The Importance of Millennials
Increased property prices and an increasingly mobile workforce have resulted in Millennials being the largest rental and the smallest homeowner demographic in the United states. Only 4% of all homeowners are Millennials.
The sheer volume of millennial renters is not something that can be ignored when looking for a rental investment. A rental property that is appealing to this younger demographic will have much less difficulty finding a tenant.
The age at which Millennials purchase homes is also increasing, meaning that they remain in the rental market for longer – increasing their attractiveness as long-term tenants.
Less Families with Children
Family units are less likely to move around, which is why the prevailing wisdom has always been that the most attractive long-term rental properties were family homes. But over the last decade this idea has been put to the question
Since 2010, the number of American families with children has decreased by 1.3 million. As the types of properties that are most sought after by renters depends on their family composition, it is likely that ‘family homes’ will become less sought after in the rental market.
Although the overall numbers of renting families have only decreased slightly, this is a trend that should not be ignored.
Rental changes in 2020
Although historically overpriced cities like New York and San Francisco have seen rent reductions this year, the same cannot be said of for most cities. Even during the uncertainty of 2020, the US rental market has seen a strong trend in rent prices.
The rental market in Richmond remains strong, and has actually seen some of the largest increases across the country. The average rent for a one bedroom property has increased Year on Year by 15.9%, closely followed by 2 bed properties at 15.10%.
Rental Property Facts Everyone Should Know
As you can see, the rental property market is a booming industry, and by keeping on top of the latest rental property facts and trends, you can make great long term investments in the market.
If you are looking for quality property management services, contact us today at Keyrenter Richmond Property Management today. Whether you are a homeowner or a real estate investor, our award-winning services focus on maximizing your profits and maintaining your rental property.