In order to keep your rental property leased, it is crucial to identify your local renter demographics first. The National Multifamily Housing Council foresees that there will be an approximate increase of eight million single-family rental households between 2018 and 2030. To meet this demand, property owners and managers must know their target market and what they’re searching for in a rental home.
Most Likely to Rent – All Property Types
The most likely demographic to rent a home is the group of young adults. This is 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 choose to rent their accommodations. This can be attributed to the fact that young individuals often experience a period of increased mobility, greater employment flexibility, and evolving social connections. Currently, the process of buying a property can be complicated and expensive, making renting a more feasible alternative.
While young adults represent the majority of the rental market, there is also a significant presence of renters of all ages. According to the same survey, two-thirds of those aged 25 to 30 still rent their homes, while one-third of people over 40 and one-fifth of people over 55 do not. Although not everyone chooses to rent, there has been a growing trend of individuals opting for rental accommodations in recent years. Renting is a popular choice among older individuals who prefer to avoid the responsibilities of home maintenance and the financial hazards associated with a fluctuating housing market.
Most Likely to Rent Single-Family Homes
It is obvious that individuals of all ages rent homes, and the age range of the most prevalent renter demographic varies by location. It is also true that specific types of rental properties are in higher demand in some places than others. For example, single-family rental homes outweigh all other types of rental properties in the West and South, whereas multifamily rental properties predominate in the East and, to a lesser extent, the Midwest.
Rental property owners must be knowledgeable about 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 because they need more room, want a yard for their pets, or want to raise their children in a suburban setting. However, single-family rental properties continue to be highly desirable for elderly individuals or young single individuals in college towns, popular retirement communities, and similar unique areas. Consequently, understanding the demands and needs of your target demographic is essential to keep your rental property rented.
Understanding the local renter demographic in your area is important but can be challenging, especially if your rental property is in a remote or developing location. In such instances, it is beneficial to enlist a local rental market expert to help you successfully prepare and promote your rental property. Real Property Management has the proper understanding and expertise to help you determine the intended demographic and ensure your rental property is leased to qualified tenants. Contact your local Real Property Management office to get more information.
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