According to the Census Bureau, home ownership rates were reported at 63% at the end of 2015, which is a 20 year low for Americans, and even dropped a point from last year end report data. The good news for rental property owners is that vacancy rates are dropping as well, proving the demand for rental units is still there. In fact, Zillow reported that the average rent rates are on the rise. Combine that with the fact that the US had over 700,000 new renters in 2015 alone. You can see a lucrative market for rental property owners.
3 Factors Combined Lead to the “Roommate Effect”
High debts, high rent rates, and low incomes have come together to create “the roommate effect.” Zillow also studied how the “roommate effect” will impact the rental market. Just like on popular sitcoms “The Golden Girls,” or “Friends,” or even “How I Met Your Mother,” adults today are doubling up in rental homes as a way to save money. In 2012, the number of American renters living with roommates or family members was over ⅓ of the adult population.
According to Stan Humphries, Chief Economist for Zillow.com, “All of these doubled-up households represent tremendous potential energy for the market. And when these compressed households begin to unwind and these millions of Americans do start to create their own households, demand will bounce back, possibly even causing household growth to outpace population growth.”
A Growing Market
Studies show that rental markets are stable and will be for some time. So now is a good time for investing in real estate. As the leader of property management companies Phoenix has to offer, RPMWV Phoenix is here to help you as you grow your portfolio. Our overall goal as a company is to save property owners the time, money, and headaches often associated with rental property. We offer solutions for every aspect of Phoenix property management, and are experts on the local Phoenix area. As you continue to grow your portfolio, lean on our professional Phoenix property managers to guide you along the way.