Here is a sampling of experts’ predictions for the 2016 residential rental market. Looks good, people!
Inman News: “Overall, the demand for rental properties is predicted to continue to rise, as the trend among millennials (adults 34 or younger) of shifts toward a more simplistic lifestyle that doesn’t include homeownership.”
CoreLogic: Rental rates will increase faster than inflation in 2016.
NerdWallet: 41% of millennials are saddled with huge student debt, and will be unable to buy housing. They will have to rent.
PropertyManager.com: Large influx of new renters in 2016, from millennials to empty-nesters downsizing from large homes to the flexibility of rental properties. Property managers need to be prepared, by increasing inventory and also increasing management efficiencies.
CNN Money: Boomers (ages 52 – 70) have been traumatized by market decline in 2008. Now that prices are going up, they want to cash in by selling their homes, and change to a lifestyle with more flexibility, virtually no responsibilities, and the ability to rapidly change housing choices as they age.
B2R Finance: Rental houses, in particular, will be in high demand. Builders have been ramping up construction of apartments, but almost nobody builds single family homes specifically as rentals. As a result, demand increases but supply is relatively stagnant. Rental rates for single family homes will continue to increase.
Rental Housing Journal: Instant gratification is not instant enough for today’s young adults. To be competitive, landlords will have to offer online services for tenants, but this investment in technology will offer expense savings in addition to lower vacancies.
To wrap up, the future looks rosy for investors who focus on residential rentals, especially for the small investor interested in rental houses.