There have been several trends emerging in the real estate market that could have a lasting impact on the rental market in 2019. According to Curbed real estate news, the Urban Land Institute's annual look forecasted that 2019 will be an unpredictable year in the market due to several complicated factors and trends. Below are some trends that could impact the rental market in 2019 and beyond.
Declining Home Buying Growth
After years of steady home-buying growth, many experts predict that the market is set to correct in 2019. In fact, 2018 started with a hot housing market that cooled by the end of the year. If housing prices continue to drop in 2019, especially on the west coast, it could trigger more renters who had been frozen out of the housing market to buy instead of rent could put downward pressure on the rental market.
New Housing Markets
According to some researchers Millennials are finally choosing to purchase single-family homes in the suburbs. However, housing demand has mostly shifted to second city suburbs. Part of this shift may be due to people leaving states with large metro cities with a high cost of living. These demographic changes could put downward pressure on housing and rental prices in high cost of living states while increasing the rental and housing pricing in smaller cities and suburbs
Competitive Rental Market Amenities Race
As rental supply grows, landlords and builders looking to fill their more expensive properties are searching for the most attractive amenities. New multifamily developments are being built to include movie theaters, dogs runs and even co-working space. As these amenities become more commonplace, it will put more pressure on landlords to add more amenities or risk losing out on highly sought after tenants.
With the rise of e-commerce and the fall of major retail chains like Sears and Toys R Us, companies will look to make retail spaces more efficient. Also, service industries like urgent care medical facilities, entertainment venues and fitness providers are becoming a new kind of retail tenant. The most noticeable impact so far on the rental market is shorter retail leases are becoming more common place.
Changes in demographics, business, and the real estate market will likely have a major impact on landlords and property managers in both the commercial and residential rental market. Staying ahead of the trends will be essential to survive in the changing rental market space.
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Disclaimer: The information provided in this post in 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.