Identifying your local renter demographics is crucial to keep your rental property leased. The National Multifamily Housing Council predicts an approximate increase of 8,000,000 single-family rental households from 2018 to 2030. To meet this demand, property owners and managers must 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 is true in almost every market across the country. Based on 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 partly because many young individuals experience a period of increased mobility, flexible employment tenure, and shifting relationships. At present, renting is generally more sensible than owning a home due to the complexity and cost involved in home ownership.
While young adults are the majority in the rental market, renters of all ages are present in substantial numbers. The report indicates that a majority of individuals aged 25 to 30 continue to rent their homes, whereas a minority of people over 40 and one-fifth of people over 55 do not. Although not universally chosen, there has been a growing trend toward renting in recent times. Older individuals often prefer renting due to the avoidance of home maintenance and 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 may vary depending on where you live. Certain types of rental properties may have higher demand in specific locations. Single-family rental homes are more prevalent than other types of rental properties in the West and South, while multifamily rental properties are more common in the East and Midwest.
This means that rental property owners should be cognizant of the most in-demand types of rental property in their area, as well as the age ranges of their target market. People who rent a single-family home typically do so to accommodate their need for additional space, want a yard for their pets, or preference for a suburban environment to raise their children. Single-family rental property remains an appealing choice for seniors or young single individuals in college towns, popular retirement communities, and other distinctive locales. Comprehending the requirements and preferences of your target demographic is crucial to keep your rental property rented.
Knowing your local renter demographic can be challenging, particularly for rental properties located in a distant or developing area. In such situations, it can be useful to enlist a local rental market expert to aid in effectively preparing and promoting your rental property in such circumstances. Real Property Management holds the necessary expertise and proficiency to assist you with comprehending your intended market and ensuring that your rental property is leased to qualified tenants. Contact your local Real Property Management office to learn more.
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