The real estate market is constantly changing. That’s why you need to make sure you are ahead of the curve. Luckily, this article tells you all the latest real estate trends that every landlord needs to be aware of.
Renting is now cheaper than buying
Housing prices are on the rise. This means buying a house right now is not as convenient for everyone, which makes renting the preferred option again.
This also relates to millennials who don’t think they can afford to buy houses. As a result, they will be more likely to rent instead of trying to own this time around.
Renting is more popular as a result.
In 2015 there were 19 million renter households compared to 17.4 million owners, which were a first since the 1960s. In addition, about 47% of 24-35-year-olds live with their parents and other forms of renting, such as staying with friends or roommates. This will put an immense amount of pressure on landlords.
Tenants expect space
Nowadays, customers have so much choice that they can afford to be picky with their time and money. What’s more, they can search online to answer questions such as ‘what is the best property management near me?’, or ‘how can I get the most for my money as a buyer?’ This has effectively meant that consumers have more purchasing power when it comes to buying property. Which, in turn, has meant specific features or characteristics are more desirable on the market.
One of the most recent trends in this regard is the demand for more space. As a result, buyers are willing to pay more for properties with high ceilings, which help create open spaces.
Anyone who owns a rental property will be aware that tenants always want more space, but this is even more important now.
Furnishing is key
Another recent trend has been the demand for furnishing. Buyers are looking at how many square feet a property has and how many items it includes. Nowadays, people are looking for furnished rentals, which means they can simply move in and start their lives rather than buy furniture or rent it from somewhere else.
As you may have guessed, this puts landlords who do not include furnishings at a distinct commercial disadvantage because they simply won’t be able to attract renters. So, you need to factor into your business model thinking if you want to stay ahead of the curve.
Location is ever more important
It may come as no surprise that where a property is located also makes a difference in renting. The ideal location will cost more because it is attractive to renters who are looking for premium properties. This could be the city center or a good school district.
Location will also become even more important as time goes on due to other factors, such as environmental concerns. For example, Millennials are not willing to pay extra for homes with pools because they think this is wasteful. They would much rather have money invested in solar panels or insulation, better for the environment.
