If you have been following what’s been going on in the world of real estate, you have probably heard that we are now a renter’s economy. Luckily, if you are involved in the multifamily industry, this is good news. With a more secure and profitable business, you can focus more on improving your community and keeping your residents content with their living environments.
The phrase, “a renter’s economy” describes the recent decrease in apartment vacancies this past year. There are a number reasons why people are opting to lease apartments rather than purchase a home nowadays. For one thing, buying requires a large down payment and high credit scores, which can sometimes be hard to obtain over time. When residents choose to rent, they avoid paying property taxes and taking care of home maintenance. When residents choose to rent, they also avoid paying property taxes and taking care of home maintenance. This makes renting seem like a much more reasonable option.
Another reason is due to people’s job stability. With promotions and new employment opportunities, residents find that renting is best to maximize their mobility in case a new opportunity in a different region presents itself. To justify buying a home, residents want to be confident in their future plans and know they will be staying in the same city for a longer period of time.
Luckily, a renter’s economy can be a good thing for property owners and management companies. With this increase in demand for apartment rentals, apartment construction can’t even keep up. If management price keep their rental rates at a competitive price, they will continue to fill their vacancies. It is simple supply and demand.
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