To keep your rental property leased, you must first identify your local renter demographics. According to the National Multifamily Housing Council, the number of households renting single-family rental homes is expected to rise by almost eight million between 2018 and 2030. To meet the rising demand, property owners and managers need to identify who their target market is and what they’re searching for in a rental home.
Most Likely to Rent – All Property Types
People in their twenties and thirties are the most likely demographic to rent a home. This holds true in essentially every single market across the country. Recent research by Harvard University’s Joint Center for Housing Studies shows that 78 percent of all households under the age of 25 rent their homes. This is due in part to the fact that many young people are going through a period of life that includes increased mobility, more flexible employment tenure, and changing relationships. Nowadays, renting makes more financial and logical sense than buying a property.
Although young adults tend to dominate the rental market, renters of all ages are present in substantial numbers. Based on the same survey, two-thirds of those aged 25 to 30 still rent their homes, while one-third of people over 40 and one-fifth of people over 55 do not. Although a sizable minority still prefers to buy rather than rent, that minority has been shrinking in recent years. Senior citizens who do not want to deal with the hassle of home maintenance or the financial risks associated with a fluctuating housing market often opt to rent instead of buy.
Most Likely to Rent Single-Family Homes
It is obvious that people of all ages rent homes, and the age range of the most prevalent renter demographic may fluctuate depending on where you live. It is also true that certain regions have a greater need for certain types of rental properties. For instance, single-family rental homes outweigh all other types of rental properties in the West and South, whereas multifamily rental properties predominate in the East and, to a lesser extent, the Midwest.
Because of this, rental property owners need to know the most in-demand types of rental property in their location, as well as the age ranges of their target market. Most people who rent a single-family home are doing so for one of the following reasons: to accommodate a growing family, to provide a yard for a pet, or to provide a suburban environment for their children. Your single-family rental property, however, may still be in demand among retirees or young professionals in college towns and other unique areas. Knowing your target demographic is essential if you want to keep your rental property rented.
In some cases, such as when your rental property is located in a far-away or developing area, it might be difficult to get a feel for the local renter demographic, despite how crucial it is. If this is your circumstance, it may be wise to enlist a local rental market expert for assistance in getting the property ready for the market. Real Property Management has the know-how to assist you in identifying your target market and ensure that your rental property is leased to qualified tenants. Contact your local Real Property Management office to learn more.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
