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In case you are looking to lease your home or apartment any time soon, you will be in for several surprises as regards the situation on the real estate market. Due to COVID-19, recent real estate developments have turned the tables on landlords reluctant to take heed of the changed climate. If you want to come out on top of the competition and attract reliable renters, you need to do the market research in advance and adapt to the shifts in the real estate air on the fly. Still, there is no room for panic; to help you make the most of your property rental, here are four of the hottest rental market trends. Be sure to check them out before you put your place up for a lease.
A third of US population is renting their home
A recent analysis of the U.S. Census Bureau shows that household rentals have reached a record high in the past 50 years and that rentals now account for over a third of the total number of homes (36.6 per cent). Furthermore, about 65 per cent of renters hold the home ownership title due to financial reasons whereas the remaining 32 per cent do so as a matter of personal choice. This means that demand for home rentals is at its peak, which is why landlords can up their asking price without much concern as to renters’ interest and total time required to reach a favorable agreement on the lease conditions.
91% of large US cities record rent increase
Recent national rent index figures by ApartmentList’s show that rents are recording a steady growth across the largest U.S. property markets, with Sacramento, California sitting at the top of the list with highest rent growth of 9.3 per cent. Likewise, the fastest annual growth of 4.9 per cent has been recorded in Idaho, but the figures point to an annual seasonal slowdown in autumn and winter months. This is great news for landlords who can now scoop increased profits from home rentals, granted they remain wary of the rent fluctuations from one month to another.
28% of SmartMove applicants have a criminal record
Another surprising trend reshaping the U.S. real estate market, the number of renters with a blemished criminal record has increased to as many as 8 percent, at least according to TransUnion SmartMove data. For this reason, independent landlords conducting criminal background checks is also on the rise as they are now more likely to get applicants with a penchant for law breaking than before. In addition to that, the number of potential tenants screened has gone up to 2 percent per rental property, and many landlords are casting wider nets when choosing whom they will lease their homes to.
More renter income goes into paying monthly rent
According to national data and SmartMove figures, more and more renters are pushing their funds mainly towards paying the rent. This constitutes an increase of nearly 5 percent, up to 29.1 percent as against the 25.8 percent back in 2000. The change is mostly due to the fact that rent increase, which is being recorded over the past years, is far beyond the wage increase. This is why both landlords and tenants are becoming choosier and more stretched to find a good bargain. The takeaway? If you are currently looking for Abilene apartments for rent, make sure you do the figures in advance since the living costs combined with slow wage increase can put a spoke in your renting wheels down the road.
The real estate market in Texas and across the U.S. is changing rapidly, and the shift is not equally favorable for all the landlords and renters alike. From increasing rent prices and somewhat different renter background to growing number of flats and houses to rent, putting your property up for lease comes with a new set of risks, so be sure to do your checks in advance and call the realistic figures when leasing your home. Good luck!
What are some other rental market trends we should know about? Let us know down in the comments.
This article originally published on GREY Journal.