Times are literally changing. This is one of the concepts that can also be applied when we talk about real estate investments and business. A long time ago, buying a house is the American dream. But today, ladies and gentlemen, it is now renting which is more favorable for the people and is deemed to be the new American dream. As the best real estate company in the country, we will show you the reasons behind why renting is now the new American dream. Moreover, if you are in the rental business, we will show you the best practices.
5 Facts about the Situation of the Real Estate Market Today
- In recent years, apartment vacancy rates have fallen too fast. The fall in the purchase of apartment and condominium units have given rise to the renting of a house or residential units.
- According to the report published by the U.S. Census Bureau, America has seen a 17.5% increase in renting from the year 2005 to the year 2010. However the bureau noted that such increase has been surpassed in many cities and counties.
- Phoenix, Arizona has recorded a 70% increase in the rental business. It is then followed by Las Vegas, Nevada with an increase of 67%. San Antonio, on the other hand, has an increase of 48%.
- The increasing trend in the rental business pushed the national rent prices by up to 2.5%.
- According to Justin Chang, in the next 5-10 years billions of dollars of private equity will be invested specifically in the single-family rental business.
4 Reasons Why renting Is the New American Dream
- People’s decision was affected by the recent foreclosure crisis. As a matter of fact, in the advent and during the time of such crisis in 2012, only 66% of the American believed that buying a house is a safe investment.
- 52% of the general American population rated them as being frugal and decided just to rent.
- 83% of the Americans said that the economy has caused them to be more cautious in buying real estate properties according to reliable research survey.
- The over-all state of the economy has created a new culture of frugality, with many Americans valuing financial security over luxury.
- Due to the housing collapse, it is estimated that approximately 3,000,000 former homeowners will become renters between 2010 and 2015.
Best Practices to Make Your Rental Business More Attractive
- List your rental business online- Online presence is a big help for your rental business. List your rentals in Craigslist, Google Plus, Rent.com and other online portals.
- Include Wi-Fi in the rent- Wireless internet services is one way of attracting renters.
- Make leasing digital and offer online payment options- It is attractive since transactions can be done with ease.