The year of 2018 has seen fluctuations in housing trends. From the downturn of new single-family home construction, increases in real estate flips and sprawling residential communities popping up across the nation, the market has been in a transition to meet the demands of today’s homeowners in a way that will support future generations to come.
The rental market is one area in the housing industry that hasn’t been slowed down by the ever-changing needs of consumers. With the move in of a new generation with today’s millennials and the growing interest of older generations, rental properties are growing in popularity and diversifying in many ways. As more and more potential renters enter the market, properties are starting to take on a new look not seen before the early 2000’s while also expanding into new locations and appealing to broader living situations to keep up with new demand.
This trend is expected to continue as more awareness of rental housing options grows and younger generations become the majority of consumers in the housing market. This hasn’t just got residents looking for new ways of housing, developers across the country are paying attention to the fluctuating demands that are moving many away from traditional buying patterns in the home market. Now with the baby boomer generation no longer the majority of decision makers, there has been a new era of renters across the nation’s top cities and suburbs that according to real estate analyst RealPage is only getting bigger.
In their Q3 rental report, the source shares a 2.9% increase in rents compared to 2017, which is a trend growing even stronger as just since the second quarter of this year rental growth rates reflect a 30% jump.
This recent growth has much to do with the state of today’s economy. Buying patterns reflect a stronger focus on flexible purchasing options where less consumers want to be locked in to long term commitments. Tapping into the demand for more flexible housing options are property development disruptors like Marcus Hiles, CEO and founder of Western Rim Properties. Throughout his 30 years as one of Texas’ leading developers Marcus has followed renter’s ever evolving demands that have changed most drastically in the last 5-10 years.
“The newest trend in rental markets? It’s all about luxury, top of the line amenities and property accommodations that not only appeal to would-be home owners- they do more. More and more there has been a transition of interest where the rental lifestyle leans itself to populations who never have considered renting a decade ago that now don’t just like it – they prefer it.” shares Marcus.
With no shortage of demand, more development firms are transitioning away from traditional residential projects to become more like that of Western Rim in building out flexible housing properties that appeal to a diversity of demographics, families and lifestyles nationwide. RealPage shares this shift is well supported as rental occupancy rates in Q3 2018 were only 4% shy of maximum capacity – an upward trend growing slightly from Q2.
As the rental market continues to evolve with the flow of new demographics, consumer interests, and property accessibility – there will either be a strengthening of interest or a downspin. For now it appears with a shortage of homes for sale, an uprising economy, and more flexible housing options – rentals may just be the majority’s preference for our current and future generations.