The real estate market always seems to be fluctuating, particularly over the last few decades. An undulating series of burst bubbles, changes in interest rates, faltering mortgage lending trends and swings in the overall economy, has made many potential investors squeamish about investing in a rental property. However, real estate over time has proven to be a stable and secure way to increase income and wealth and has stood the test of time. If you’re just getting started or thinking about putting your nest egg in a rental home, it helps to know what kind of environment is expected over the next few months. Here are a few of the most significant factors at play in the rental market across America in 2017.
Increasing Interest Rates is Expected to Impact the Housing Market
The Fed has already raised interest rates in early 2017 and is expected to continue through the year. Doing so will increase the cost of mortgages and might make some potential home buyers wait a few more years before taking the plunge. This, of course, means that those who prefer holding off will be in the renters market longer than initially expected.
Labor, Materials and Land Costs for Home Construction is Increasing
A tightening of immigration policy and overall rising minimum wages will cause a spike in the labor budgets of construction companies and contractors. Couple this with growing land prices and material costs, there’s sure to be even more financial pressure for families who would otherwise prefer to build their own home, expanding the pool of potential renters.
Millennials Still Consist Primarily of Renters
Millennials are growing older. The eldest of their generation are now graduating from college and entering the labor market. However, unlike their predecessors, they are holding off on homeownership. Many millennials are waiting longer to settle down, preferring to delay marriage, babies, and mortgages until their late twenties or early thirties. If this trend continues, landlords can expect an upsurge in renters with large cash flows that elect not to buy a home until they are ready to make long-term commitments.
More Wealthy Renters are Entering the Marketplace
In the past, owning a home was the highest pinnacle of the American Dream. In today’s modern landscape, the way that people earn income has changed drastically. Many people change jobs multiple times throughout their career. The likelihood of employers asking their staff to relocate temporarily has increased significantly. Also, the number of location independent consultants and freelancers is skyrocketing. This means there is a large boost of high-income earners who consider themselves elective renters. They aren’t in the renters market because they can’t afford a mortgage, rather because they aren’t sure where the future will take them and therefore are reluctant about tying up their finances in such a large single investment. Some of today’s wealthiest executives and entrepreneurs prefer the freedom and ease that renting can bring.
Do You Need Help Managing Your Atlanta Area Rental Properties? Call DKRentals.net Today
Today’s fast-paced world can make managing rental properties difficult. Many property owners must balance their investment with other responsibilities. Some work strenuous day jobs while raising a family. Others have their hands in many different businesses and investments and struggle to juggle the weight of their obligations. Marketing empty rental units, screening tenants, collecting past due rent, and calling a plumber in the middle of the night are all necessary for successful property maintenance. Yet, these tasks can easily overwhelm landlords. Thankfully, there’s a solution. The experts at DKRental.net are available for local Atlanta area property owners. We can help you manage your properties effectively, so you can continue maximizing profits while reducing your workload. If you’re ready to gain more freedom in your schedule, call our team of property management professionals to find out how our services can help you.
