Rental properties, specifically single family housing, has been a mainstay nationwide for the past several years. Owners of these properties have benefited from the previous housing boom, which eventually forced many into foreclosures and out of their homes into rentals. According to the chief economist for the National Association of Relators, Lawrence Yun, investors are in a good place with regards to rental properties but should not expect to see the continued rise in rental rates.
Statistics show that there has been an increase in rental income of over $70 billion, yes billion, to $130 billion in just 8 short years. However, historically low interests rates along with improved credit on the part of homeowners previously forced into foreclosure amongst other factors translate into home purchases and less of a need for single-family home rentals. Aiding this is the rise in multi-family housing and apartments. More and more, families that once owned homes are coming to a place where they have repaired their credit scores and are looking to enter the housing market as homeowners once more.
So what does this mean for you? According to Yun, there is still a need for home rentals but this need will indeed slow. The question is when this will occur. If you have a rental property don’t be alarmed just prepare for the possibility of a slow down in the market within the next two years.
If you are considering investing in residential properties, you may want to weigh out the pros and cons. For some perhaps purchasing an investment property that can be flipped may be more advantageous in the current climate. However, we do live in the Sunshine State and are still a thriving technological and medical area and as such need housing to accommodate the needs of young families to part-time residents and everyone in between. Having a rental property may be best for you with regards to these factors.
Most certainly in Brevard County, FL we have seen tremendous growth and a need for homes to sell. We are at an all time low with regards to available homes for sale putting buyers on hold until properties matching their needs arise. When the economy improves, as it has been doing recently, people tend to begin long term planning in earnest and part of that includes purchasing a home.
Real Estate Ink knows you have questions regarding rental properties. Should you go for it or wait? Is now a good time to invest in property? If you have questions please call us today. We can assist you from buying to selling. We also provide property management so you can rest assured your needs will be met no matter what they are.