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The new real estate boom will be in rentals
predicts Brian Davis, guest columnist on Inman News.
 "Home prices and sales may be flat, but the rental industry is
booming." says Davis. According to the National Association of Realtors, vacancies
will decline by 9 percent in the multi-family market.
"Gen Rent" is what Real Estate Coach, Bernice Ross is calling the
trend; renting to the GenX and Gen Y generations who were living at home and
are now entering the rental market as new households. Ross suggests adding this rapidly growing
market to your business.
"At the peak of the housing boom, homeownership in America
reached an all-time high at 69.2 percent," writes Davis. "Today that number has
plummeted to fewer than 67 percent, which may not sound like a huge drop, but
that represents roughly 3 million households that were owner-occupied and are
now tenant-occupied."
Vacancies are on the decline, which means rental rates are going
up. According to Davis, the nationwide average rental amount rose from $967 in
early 2010 to $991 in 2011.
New construction on apartment buildings is increasing in
response to the demand but with so many companies out of business, it will be a
few years before anything changes.
"The rental industry is on the rise," says Davis, "and some
real estate experts believe that its growth will accelerate rapidly over the
next three to five years."
"It's a great time to start representing "Gen
Rent." agrees Ross.
Read the full story at Inman News.
 photo credit: Indiana Public Media
Posted on September 22, 2011 15:26:17 by  IPTV.Boyz
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