Whether you are investigating rental housing activity because you’re looking for an investment or just a place to rent yourself, it’s important to become informed about the state of play in rental housing as a whole. It’s a picture that has been changing rapidly—one that’s unlikely to slow anytime soon.
Much is being written about the growing popularity of rental housing due to younger buyers who either can’t yet afford (or simply choose to avoid) taking on the commitment that homeownership entails. But that’s not the only factor contributing to what amounts to a nationwide shift in rental housing’s popularity.
This summer’s in-depth study by the Urban Institute presented four points explaining why “renting homes is overtaking the housing market.”
“Overtaking” may be an overstatement as it relates to today’s rental housing profile in the Grand Forks area, but there can be little doubt that the points are on target for the U.S. as a whole. It’s also inevitable that we can count on similar factors affecting the Grand Forks area’s rental housing future.
In brief, here are their findings:
- Renter profiles are changing. Millennials are not buying their own homes as early as previous generations, and many in the 65+ set are choosing to rent. As expected, new immigrants continue to choose to rent.
- Supply trails demand. High-end developments continue to monopolize new construction activity, neglecting the larger “more-affordable” sector.
- Renovations are lagging. Under-repaired rentals have resulted from inattention by investors…but some great ideas are making rehabilitation more cost-effective.
- Single-family rentals are becoming more popular. Multifamily projects have long been the focus of government programs, but that’s changing as single-family rentals leap in popularity.
It’s a cinch that both tenants and landlords will continue to be affected by the kind of national currents that continue to put pressure on housing costs—and rents. Against that background, the potential for Grand Forks area rental housing candidates should be well worth a hard look where investment goals make it appropriate. We are here to put our deep market knowledge and experience at your service!