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.
Increasing Occupancy is not a goal its a guarantee!!
November 2017 The market is beginning to feel the effects of the large amount of inventory added again this year. In the luxury segment the term glut is even being bandied about. Markets like NY, Denver, and Dallas are reporting not only and increase in inventory but an increase in vacancy rates.The middle and entry level segments are moderately competitive in comparison to the luxury market, but vacancy rates are beginning to creep up.
All Communities in this Increasingly Competitive Market Need to
Reduce Marketing Costs
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RentLogic has a proven track record of generating leads while reducing marketing costs, producing immediate results. RentLogic is so confident in the success of the product, you can take advantage of a no-obligation day free trial. If at anytime during the trial period you are not happy with the quality of the leads being generated, you may cancel at no cost to you.
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Yes, they are more renters than at any point in the last 50 years, that is true. But consider if you will, according to data from the MNHC website, there are more luxury apartment units than the market demands, just look at the data below. Think about it, multifamily housing construction for 2017 is at an all time high and Yardi Matrix predicts a 21% increase in luxury units added to the market for 2017.
Statistics for 2016 from NMHC website
- Households that rent apartments: 18,858,729
- Existing Units on the market: 19,506,190
- Units Added in 2016: 421,064
Bubble Watch in Luxury Market
New inventory being added to the luxury housing market, apartments included have been outpacing market demand for several years now. The result is beginning to create downward pressure on rents and in many cases properties are beginning to miss the mark on occupancy goals. The Wall Street Journal and Zero Hedge have both written very good articles regarding the inventory glut and the effects.
What is Needed as the Boom Begins to Fizzle
As the glut of invesntory in the Luxury Apartments market begins to take hold, properties are going to have to become more effective reaching their intended audience. Rentlogic has been assisting the multihousing industry in increasing occupancy for more than 8 years with its innovative and proprietary system.
We know how to reach your intended audience. We also understand many management companies, in an effort to save costs, have an individual or individuals that post ads daily to increase their reach. However, are they posting high impact – branded ads continuously 7 days a week, 24 hours a day, constantly tracking and analyzing the effectiveness of the ads. Adjusting copy as needed to deliver the highest and best results to our clients.
At Rentlogic, that is our only focus. Increasing your occupancy through increased leads, reduced marketing costs, and getting you 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.