To ensure your rental property remains leased, it’s essential to identify the demographics of local renters. According to the National Multifamily Housing Council, the number of single-family rental houses is expected to increase by approximately eight million between 2018 and 2030. To meet this demand, property owners and managers must understand their target market and recognize what features renters are looking for in a rental home.
Most Likely to Rent
Young adults are the most likely demographic to rent a home. This is particularly true in the majority of markets across the country. As attested by recent research by Harvard University’s Joint Center for Housing Studies, 78% of all households under the age of 25 rent their homes. This is partly because lots of young people are in a stage of life marked by increased mobility, more flexible employment tenure, and unstable relationships. Currently, purchasing a house can be challenging and costly, so renting is usually a better choice.
Although young adults tend to control the rental market, renters of all ages are present in a significant quantity. According to a similar study, two-thirds of those aged 25 to 30 continue to rent their homes, while one-third of people over 40 and one-fifth of people over 55 do not. Recently, the number of individuals who prefer to rent has grown, even though it is still not universal. Renting is a popular option for elderly individuals who want to prevent the hassle of home maintenance and the monetary risk connected with a fluctuating housing market.
Most Likely to Rent Single-Family Homes
Clearly, people of all ages rent homes, and the age range of the most prevalent renter demographic may differ depending on your location. It is also true that certain types of rental properties are in more need in some areas than others. Single-family rental homes, for illustration, outnumber all other types of rental properties in the West and South. In contrast, multifamily rental properties are predominant in the East and, to a lesser degree, the Midwest.
Rental property owners should pay close attention to the most sought-after types of rental properties in their area, as well as the age ranges of their target market. Many individuals choose to rent a single-family home for extra space, a yard for their pets, or to raise their children in a suburban setting. However, single-family rental homes may also attract elderly individuals or young singles, particularly in college towns and popular retirement communities. Therefore, understanding the needs and preferences of your target demographic is crucial for maintaining consistent occupancy in your rental property.
While understanding the local renter demographic is important, it can sometimes be challenging—especially in remote or developing areas. In such cases, it may be beneficial to consult with a local rental market expert who can assist you in preparing and marketing your rental property. Real Property Management possesses the knowledge and expertise needed to help you identify your primary market and ensure your rental property is leased to qualified tenants.
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