As an obsessed real-estate student, I am always looking on real-estate websites. While searching for property values in the greater Seattle area on Zillow, I came across their "Consumer Housing Trends Report 2018." Of course, this instantly caught my attention and the research is gold and can be for you.
State of Housing Market
According to the 2018 report, the economy is thriving and so is the housing market! Home values are increasing and sales of homes are slowing down. Year-over-year home appreciation is at an all time high as well. Sounds like a great time to invest in property rentals, doesn't it? I thought so too!
Renting competition among suppliers in the market, aka other renters, is slowing down but rent prices are extremely high and making today the worst rent price in history. In translation, this means you need to be competitive and undercut your competition, at least that's what I'd do! According to the report, the main reason renters move is due to increase in rent price
The largest share of first-time buyers in the housing market falls to the Millennials, age 24-38. Way to go Millennials, now rent our some of those rooms to help with that mortgage!
Who Are Today's Renters?
The avid renters you'll run into are single, educated (which means you'll need to know your stuff), and shares their home with a partner, child, or roommate. So look to attract that younger age group who just came out of college into the workforce cause they are looking for your property!
Here is the big hit for us looking to rent our properties, 37 percent of renters choose to rent so they can easily move for their life changes. If your property is a close commute to a strong city with high employment this means you'll always have high demand! On top of this, 31 percent rent because they don't want to be tied down to a dreadful mortgage! I mean, who would right?
Location, Location, Location!
So you know the housing market is a gold mine and renters are everywhere looking to live. Now you are wondering where you should buy your property? Well, let me tell you. According to the informative 2018 report, 47 percent of renters like to live in the suburbs, 40 percent live in the city, and 13 percent live in the rural area. If you buy a property and rent out of the suburbs or can afford to invest in a property within the city, you have hit a gold mine my friend! Just remember, location is a vital position for your success in owning a rental property. Think location and affordability, then think of all the other things such as legalities and services you want to provide.
These are all the facts I am going to throw at you now so I don't overload you. If you want to learn more, check out the official report or read other blog posts! Remember, location and price are vital!
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