Renters Now Rule Half of U.S. Cities

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March 20, 2017
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April 10, 2017
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Renters Now Rule Half of U.S. Cities

52 out of 100 largest U.S. cities were populated by more renters than homeowners in 2015, according to U.S. Census Bureau data.

Think this may, just may, have serious financial implications for landlords, investors, and other stakeholders in these communities and beyond?

Uhhhh, Yup.

Here’s the full article published 3/23/17 about this trend:

http://m.nreionline.com/multifamily/renters-now-rule-half-us-cities?NL=NREI-21&Issue=NREI-21_20170324_NREI-21_750&sfvc4enews=42&cl=article_4&utm_rid=CPG09000005928948&utm_campaign=8879&utm_medium=email&elq2=2497704fe62a40cbac47d1c8bd97e3b9

So, what’s the takeaway for you?

  1. We are in the midst of another mega demographic shift, but this time from multiple age groups.  Both baby boomers and Millennials this time around are contributing to this shift.
  2. The rental market should stay extremely strong through 2030.  That’s another 13 year bull market run for landlords.
  3. Home inventories will remain tight for renters to buy.  This means your renters who will soon become home buyers, will certainly be looking for an option to do an early lease termination.  Smart landlords will have their leases updated to offer this option to renters, along with a financial benefit for the landlord to allow the option, of course.  Perfect opportunity to add significant profit margin to your portfolio without losing out on occupancy since there will be another renter lined up right behind the outgoing tenant!
  4. Look for government entities, both at Federal level and local political subdivision level, to start poking around in landlord affairs more intrusively, all on the pretense of assisting renters.  I.E. more landlord registration ordinances, tax credits for low-wage workers (which really means more tax burden on landlords), and even possibly restricting landlords ability to set their own rental rates such as rent control.
  5. Possible increase in backlash from owner occupant households against landlords and renters, since there can be the negative connotation that both will negatively impact the social constructs of a community.

As always, keep getting educated on the trends that affect your Financial Freedom so you can stay laser focused on that Freedom!

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