Demand for Rentals on the Rise

Are people waiting to see what will happen with our economy before committing to a house purchase? Tenants these days are a diverse group. Those choosing to rent instead of paying a mortgage right now may include professionals, active seniors as well as families. Some rent because they are undecided about where or what to buy. Others choose to remain a tenant for convenience. They don’t have to worry about replacing the roof, repairing fixtures and appliances or maintaining the grounds. With fuel costs rising and a changing job market, some people are holding back from committing to a mortgage.

Rental markets can differ greatly based on the location. Some communities are experiencing a higher demand for rentals as their populations increase from new job creation or due to the slowing house sales. The article written by Aleshia Howe on May 19, 2008 in the Fort Worth Business Press describes how the Rental Market is Booming in Fort Worth, Texas. The increase in demand is attributed to a softening housing market and new job opportunities in Tarrant County.

 

Alan Heavens discusses in his article in the Philadelphia Inquirer how the rental industry has been affected due to slowing house sales. His examples of the type of tenant choosing to rent right now help to identify why the demand for rental properties has increased. Many new rentals in the region are being offered by owners that are waiting for the housing sales market to pick back up.

 

Tenants today are looking for rentals both in the urban & rural areas. They look for a variety of styles such as apartments & condos but are also in the market for houses with back yards and finished basements. Tenants look for value in rentals and will often consider different price ranges depending on what is included in the rent.

 

For those looking for a secure investment, rental properties can be an ideal arrangement. New landlords are also emerging in situations where they choose to rent out a property that is failing to sell for the price that they need. Creative rental opportunities can fit specific needs. An example may be where a place is rented to an out of town worker during the week and perhaps a tourist on the weekend. For someone with a student rental, they may accommodate a family awaiting their house to be built over the summer months leaving the rental to be available when the students return in the fall.