Property managers and rental owners in Oklahoma are seeing more echo boomers and millenials, The Norman Transcript reports, two groups of young adults who are driving rental activity and construction higher.

Millenials, between the ages of 25 and 34, are currently an expanding demographic in the area. According to Advertising-Age, the percentage of millenials increased 12.2 percent between 2000 and 2010, making it the fifth-ranked state in the nation for growth of that demographic.

Given that young adults are traditionally renters and some experts say their arrival is a predictor of economic growth, rental property owners are reportedly looking forward to the future. The older echo boomers fall into the category of young professionals, which one industry broker noted represents a prime demographic for the rental housing sector.

With the population looking unfavorably on homeownership at the moment, these young adults may want to rent houses rather than buy them, creating an opportunity for property owners investing in the area.

This year is expected to see the continuation of 2011 trends, such as increasing rents and occupancy, which made last year a relatively good one for are rental housing stakeholders.

Federal plans to market 200,000 foreclosed homes as rentals are drawing major interest among investors including private equity firms, Bloomberg reports.

More than one firm plans to invest $1 billion or more in the opportunity from now to 2016, according to the news source, as they vie for the chance to be involved in a move that is expected to exercise a significant positive impact on the national housing market.

GTIS Partners indicated it expects to invest largely in the hardest-hit states, such as California, Nevada and Arizona. Investors and property management companies in harder-hit states should expect the largest changes, while those in areas with fewer foreclosures will likely experience less of a difference as these new rental homes become available.

Proponents of this move believe it will stem the tide of dropping home prices and reduce lender losses on foreclosed and distressed properties. Proposals for how to go about converting REO properties to rentals have been under discussion since September, and now officials and investors are preparing to move forward.

According to GlobeSt.com, demand for rental housing in Phoenix is expected to level off this year after a moderate increase during 2011, though investment activity is expected to remain strong.

Such an increase in demand would represent a continuation of the trend that marked 2011, in which demand was high enough for rents to increase sharply. Net effective rents rose 12 percent overall since 2009, one expert told the source.

The demand for rental housing is high enough that construction of several new apartment units are planned, indicating there is likely an opportunity for investors to purchase profitable rentals in the area. Rental property services are available for those who wish to own a property without operating it.

According to the source, Phoenix has been the target of significant investment recently because of the market conditions. One aspect of the market that has improved recently is the number of real estate-owned properties in the metro area, which decreased in 2011.

Some investors are reportedly pursuing value-add deals in the area to better appeal to prospective tenants. Colliers International executive Brad Cooke told the source this year would see a shift from REOs to traditional sellers.

Property management companies and landlords in the Twin Cities may be benefiting from high rental demand.

The Keystone Report for the Builders Association of the Twin Cities shows permits were issued for construction of 465 new units in the are during January, the organization reports, more than double the number begun during the same month in 2011. Curt Christensen, Builders Association president, stated that 2012 is expected to be a good year, based partly on this beginning.

While the number of permits issued was actually lower by about 10 percent at 185, this is because the new units are being distributed throughout fewer buildings. Almost two-thirds of the units are located within just five buildings. One is in St. Paul and one is in Hudson, with each of the two holding about 44 units.

The other three have a combined 177 units, and are all located in Minneapolis, showing that builders perceive high demand for rental housing there. Rental managers may find opportunities in the area, while investors should note that this indicates unmet demand exists there.

President Barack Obama’s housing plan represents the federal government’s recognition of the importance of the rental housing market, according to the National Multi Housing Council (NMHC) and National Apartment Association (NAA).

In that respect the organizations support the plan, specifically the initiative to use bulk sales of real estate-owned properties held by the Fannie Mae, Freddie Mac and the government. The organizations did warn against housing policies that emphasize homeownership at the expense of rental housing, noting that preferential policies contributed to the national economic crisis.

With regards to the plan, the organizations also noted that care should be taken to ensure the repurposed homes are maintained in good condition, suggesting that owners and rental managers will need to work together to take advantage of the opportunity.

“Importantly, the president’s proposal underscores our key message that while there might be an oversupply of single-family housing, there is a shortage of rental housing,” NMHC senior vice president of government affairs Cindy Chetti said in the statement. “Demographics and changing lifestyles have led to a structural shift in our nation’s housing preferences to more heavily favor renting. Renters could make up half of all new households this decade, more than seven million new renter households.”

These projections indicate investors may need the help of property management companies and other professionals to meet demand in the years ahead.

Multi-Housing News reports that Long Island City has attracted enough residents in the past six or seven months to decrease the area apartment vacancy rate from 3.5 to 2 percent, according to a report from brokerage and marketing firm Modern Spaces.

Many of the new residents are first-timers, according to the report. Modern Spaces president Eric Benaim told the source that residents weer likely drawn by the variety of cultural attractions and restaurants, noting that the neighborhood hosts many galleries and museums.

The report suggests that the location is also good for many commuters, suggesting short travel times to get to work from the area are an appealing characteristic for the neighborhood’s new renters.

Additional rental properties are planned to open in the near future, while a number of businesses have opened in recent years to meet residents’ needs. Similarly commuter-friendly areas may be strong investment opportunities, especially with the help of property management companies in operating a rental residence.

Overall, the report indicates 2011 was a good year for the area, partly due to the rising rents in other parts of the city.

Amid discussions of how best to deal with the number of foreclosed homes currently in the inventories of the Federal Housing Administration and its sponsored enterprises, Fannie Mae and Freddie Mac, HousingWire reports that panelists at the American Securitization Forum stated they are leaning toward rental conversions.

The idea of converting foreclosed homes into rental properties has been under discussion for some time, with some suggesting it would reduce inventory and help the market. The degree of government involvement in such a program has varied between proposals.

Individuals, including Federal Reserve Bank of Boston senior economist and policy advisor Paul Willen, have indicated such a plan might not be successful. According to Willen, the number of properties in circulation may essentially be unchanged and the program will not necessarily address the oversupply problem.

On the other hand, the source notes, the Federal Housing Finance Agency is already considering program structures that might be used if the government goes forward with an REO rental conversion plan.

Depending on the details, such a program could represent a chance for investors and property managers to get involved in a housing recovery while meeting consumer demand for rental accommodations.

Continued solid growth in market and stabilized rents is causing apartment industry stakeholders in New York to predict that the trend of high apartment building sales will be ongoing in 2012, The New York Post reports.

Real estate investment trusts and others increased their buying activity. A number of large apartment sales marked 2011, according to the source.

“Sellers chose to take advantage of a low interest rate environment, which exerted downward pressure on cap rates, driving prices up,” chairman Robert Knakal of Massey Knakal Realty Services told the source. “There were nine multi-family sales over $100 million last year as institutional capital came back into the market in a big way.”

He stated the trend was unsurprising, citing “extraordinarily low” vacancy rates in
the city’s multifamily housing. At the same time, executive vice president Paul Leibowitz of Coldwell Banker Real Estate told the source that the past year was influenced by a large, pent-up supply. Based on expectations that rental fundamentals will remain strong, he predicts more significant transactions this year.

Those purchasing these buildings may have need of property management services. Similarly, owners of single-family homes and other residential properties may be able to tap into the strong demand by renting their properties, which are less likely to find buyers in the current housing market.

Data from Reis analytics firm indicates that Chattanooga, Tennessee ranked third in apartment rent increases during 2011.

Former Chattanooga Apartment Association president Becky Brooks reportedly told the Chattanooga Times Free Press that new business and industry moving into the area is the root cause, bringing jobs and activity. In particular, Volkswagen has hired 2,500 people over the past three years, according to the news source, while local suppliers have added more.

All those workers need somewhere to live, and property management companies and owners in the area have reportedly benefited from a 3.8 percent increase in effective rents during 2011, compared to 2.3 percent for the nation as a whole. There was reportedly an increase of 1.3 percent during the last quarter of the year, which Reis’ Brad Doremus described as strong growth.

The average effective rent was $625 a month, still well below the national average of $1,009 a month despite the growth – according to Reis. This may also have played a part in attracting residents. Brooks also noted that, of those who have the option of buying a home, many see it as an unwise investment and prefer to rent.

The source attributes this rise in building growth to high demand and rising rents in recent years, noting that recent years were previously marked by a lack of construction. Because of that trend, increases in demand necessitate new construction and existing units have seen more competition for tenancy.

Area rental managers may continue to benefit from this, along with investors and others involved in the residential rental property business. The latest project is still seeking approval for its rezoning and development plan, according to the source. When completed, it is expected to add 272 units.

In addition to the opportunity to invest in apartments, some interested in this particular market may benefit from renting single-family homes or other residences, for those individuals and families in the area who wish to rent but whose housing preferences do not include apartments.