It’s common knowledge that the U.S. housing market has largely recovered from the calamity that followed the housing bubble burst of 2007-2008. However, relatively few appreciate the fact that the conditions that made the years following the bubble burst so lucrative for rental property owners are still in existence today.
The U.S. homeownership rate is currently at its lowest level in 20 years. Rapidly rising home prices are already making homeownership unattainable again for many in expensive markets like Boston, Seattle and San Diego. Entire generations are saturating rental markets around the country, from Millennials migrating in search of work to Baby Boomers testing out pleasant climes as they prepare for retirement.
Here are three metropolitan areas with rental markets that are on the verge of becoming significantly more lucrative in the coming months because of these housing trends:
Chicago: The Chicago area’s occupancy rate is rising, and so are local rents; suburban Chicago rents have increased for five consecutive years. Its market revenue performance, a metric combining the occupancy rate and median rent, recently reached the highest point it’s ever attained. See a list of Chicago property managers >>
Atlanta: Rental housing supply in Atlanta, described as “the South’s mecca for migration of the young,” is struggling to keep up with demand even though construction cranes dot its skyline, and rents are soaring as a result. RealtyTrac, a real estate information company, recently named Atlanta to be the best U.S. rental market because of the estimated 26% potential return it estimates property owners can get there. See a list of Atlanta property managers >>
Baltimore: Home prices are rising much faster than incomes in the Baltimore area, leading to increased demand for rental housing – and rising rents – despite the simultaneous apartment construction boom. RealtyTrac also recently named Baltimore to be one of the best U.S. rental markets because of the 21% potential return it estimates property owners can get there. See a list of Baltimore property managers >>
You need to ask yourself: How is the rental market looking in my city? How easy is it for rental property owners to profit from current housing trends?
There’s no better way to answer these important questions than by reaching out to a local property manager. Click the below button to get a free, no-commitment quote from one or more property managers and start a conversation that could have a huge and lasting impact on your finances.