The trending preference of renting over buying is good news for the Richmond investment property owner. In fact, the National Association of Realtors estimates 5 million new households of renters to emerge in the next ten years. The eruption of new rental households is mainly due to the decision of millennials to put off homeownership.
It’s an Investors Market
According to a recent national renters survey, renters are committing to their rental properties long-term. The survey shows the percentage of single-family home property renters committing to their rental properties for more than 5 years is 22%, 3-5 years is 14%, and those expecting to commit for at least 2 years is 59%.
These figures show on average that 25 percent of single family home renters plan to stay put for more than five years. This trend impacts the Richmond investor market through lower vacancy rates and more stable tenants.
The Rental Life for Me
The millennial generation is known for putting important life events off till later in life. Owning a home is no different, as 60 percent of those surveyed said they don’t plan on purchasing a home of their own in the next five years!
When asked why they did not foresee homeownership in the near distant future, respondent answers were divided into three reasons:
- 29% said they are unable to attain a mortgage
- 33% didn’t want to be tied down and burdened by homeownership
- 42% said they just enjoy the freedom and mobility that comes with renting
Featuring a Great Lifestyle
The survey also revealed renters top priorities when choosing where to live, and results were pretty consistent to past years.
- Proximity to good schools (84%)
- Safe neighborhoods (97%)
- Proximity to parks (71%)
- Access to a community center (64%)
- Friendly neighborhood (94%)
With this explosive growth in the rental market and the rising rent rates nationwide, the Richmond property management industry is growing as well. If you are in need of assistance to manage your rental properties, contact the leader in residential Richmond property management today!