We hear ad nauseum that home ownership is at an all time low and that rentals continue to make gains in the market. The Millenials are a significant driving force, but not in the way the market anticipated. Student loans, lower paying jobs post graduation and a lack of desire to put down real roots have not disuaded them from wanting to live in a single family home, but their preference is to rent. The impact to the overall rental market is substantial. This trend is beginning to have a definate impact on the luxury apartment market.
According to the Urban Institute, rentals have led the demand and have increased by 30% in just the last 36 months. Take markets like Houston, Miami and Minneapolis for example, more than 2/3 of single family home rentals were occupied by those 65 and over according to RENTCafe. The analysis of the census data shows a 26% increase in demand for single family home rentals between 2009 and 2015.
The rental market is trending strongly in favor of the single family homes, and that demand continues to grow with millenials and seniors strongly favoring them over apartments, luxury or otherwise. Multi-family housing providers are going to have to work harder to compete, especially in the luxury market where we discussed last week is beginning to become oversaturated in many markets. Also as we discussed in the previous post, it is beginning to soften rents in those same markets showing the beginning signs of a glut of inventory.
At Rentlogic, we increase occupancy through increased leads, reduced marketing costs, and we get immediate results. All calls are tracked and you can access that data at anytme. You can look at the dates, times, and call durations of each call, so you can see the results of our proven system.