With the new there are new predictions on what trends will impact the rental market in 2018. to Forbes, there are four trends that landlords should keep an eye on and make sure their businesses strategies are aligned with.
Rental occupancy is predicted to decline and rent growth is expected to slow
Since rental demand in major cities around the country is slowing as the supply of real estate increases with new construction, rental growth is expected to slow down to around 2% a year. Therefore, landlords need to work keep and attract tenants with better and more targeted marketing and by offering valued amenities to prospective tenants.
The Renting landscape is changing as the Population Shifts And Affordability becomes an issue
There is a shift for more affordable housing as certain cities are establishing ratios of affordable housing that are required within their city. Also baby boomers are moving from the suburbs into the city, choosing to rent rather than buy which may put pressure on demand but require changes to attract this aging renting population.
Southeast and northwest are hot markets right now, and senior housing will boom as the U.S. population of adults over 65 reaches 98 million by 2060.
Impact of Tech
Tech can have a major positive impact on the rental market if it is utilized correctly from property management software to AI learning that can automate maintenance.
While the impact of some of the trends reported may seem , property managers and landlords should expect to see a shift towards these trends in the coming months and years.
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Disclaimer: The information provided in this post not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.