As 2019 kicks off, property managers and investors may wonder how the housing market for the upcoming year may affect the multi-housing industry. We’ve checked in with the experts, and here are the housing trends to expect for the year.
Mortgage rates are increasing
We’ve already seen the mortgage interest rates increase in 2018, and we’re going to see them go up again in 2019. That means that purchasing a house will be more difficult for first-time buyers. The rising interest will add to a homebuyer’s total monthly payment. What will this mean for the industry?
According to Forbes, more people will turn to renting while they wait out the instability of the market. With higher interest rates and a lukewarm housing market, people are more tentative when it comes to taking the leap to buy a home.
Millennials will make up the bulk of home seekers in 2019
Experts say that almost half the of people at the home seeking stage will be millennials. However, Millennials tend to be more budget conscious and are apt to rent versus buy a home if the price isn’t right.
Rent will rise
Since the home buying market will be on the sluggish side, rent is predicted to rise. New York City is definitely going to see rent hikes due to Amazon’s presence there.
Inventory of homes will increase
The inventory of houses on the market was tight last year, which meant the competition for buyers was strong. However, this year the inventory of homes will increase some, but prospective buyers will see pricier homes more than entry-level, priced homes.
With the housing market trending towards a slight slow down, property managers can expect to see more people interested in renting. They should also see many of their current tenants re-signing their leases. This is good news for the multi-housing industry. At Marquette Management, we’re keeping up on top of the current trends. For more information, get in touch. The best place to live, work, and invest!Back to all posts