The changing landscape of the real estate market as we look forward into 2018 is going to affect the rental industry in many ways. Anyone in the real estate or rental industry should be looking at these as they think about how to grow their business, meet owner and renter expectations, and create strategies to meet revenue goals this year and into the future.
In a recent Forbes article, AppFolio’s VP of Product Management, Nat Kunes, shares his predictions for the big four rental trends to pay attention to in 2018:
1.) Occupancy Rates Fall And Rent Growth Slows
Single-family rent demand is slowing down in most areas of the United States, with the exception of major metropolitan areas that continue to boom. With less demand, property managers will need to get more aggressive about attracting and keeping renters.
2.) Population Shifts And Affordability Reshape The Landscape
There are two things that drive the rental market — population shifts and affordability. The biggest trend in affordable housing is the shift away from public housing to housing choice voucher programs. Demographic shifts will also reshape parts of the real estate landscape. An increasing trend for baby boomers and the empty nester population is to actually move out of the suburbs and into urban environments, often choosing to rent instead of buy.
3.) Hottest Market Opportunities
While we have all heard about the popularity of moving to cities like Nashville — the entire Southeast, in fact, and the Northwest are becoming a popular living destinations for many. After all, hot rental markets tend to follow job and population growth. Investors looking to expand their properties should consider these regions.
4.) Tech Disruption
The use of intelligent systems, machine learning and AI applications in software will, increasingly, be a huge agent of change in the real estate industry. This disruption will alter everything from property valuation all the way to property management — an area where the use of AI and chatbots can offer tenants better service and automate maintenance workflows.
To get even more detail on Nat’s predictions, as well as ways you can keep up and remain a player in this ever-evolving market, check out the entire Forbes article, Four Trends That Will Impact Rental Markets In 2018.