Thanks to Andrew Propst, President of Park Place Property Management for this great info!
The housing market in Idaho and across the country is experiencing a transformation unlike anything we’ve ever seen. Working families are demanding flexibility over stability more than ever and the real estate market has begun to reflect that. Gone is the dream of a house with a white picket fence and a gold watch after working for 30 years at the same company.
Generations X and Y have different priorities from their parents. Employee tenure has shortened drastically and mobility and flexibility are important factors in making a decision about where to live. This need for flexibility has caused a noticeable shift from homeowners to renters. Throw in those who were financially devastated by the housing collapse and those who are timid to be home owners again and the number of new renters in the market is staggering.
There has never been a better time to own investment property, please contact us anytime for a rental market analysis on your clients’ investment properties.
A recent USA Today article provides quality insight on this shift. http://www.usatoday.com/money/economy/housing/story/2012-06-05/are-home-rentals-the-new-american-dream/55402648/1#.T-30HcDlzjo.email
To paraprase: Unlike traditional apartment renters, this new breed of American tenants is older and have kids, U.S. Census Bureau data indicate. As they move from homes they owned to ones they rent, they’re changing neighborhoods for better and for worse. They’re fueling a land-rush as investors snap up homes, mostly in markets hard-hit by foreclosure, to rent to them. And their growth — in cities from Florida to California — has implications for home builders, school districts and companies that will jockey for the dollars they used to invest in homes, predict Wall Street analysts and demographic researchers.
“We’ve never seen anything like this,” says John Burns, CEO of John Burns Real Estate Consulting.
The foreclosure crisis will drive 3 million former homeowners to rent single-family homes between 2010 and 2015, Burns estimates. That’s three of four homeowners who lose homes to foreclosure or other mortgage distress. The single-family home rental was the fastest-growing part of the rental market from 2005 to 2010, Fannie Mae says, citing U.S. Census data. Its continued growth is “unprecedented,” Burns adds.
“In the next five to 10 years, you’ll see tens of billions, if not hundreds of billions, of dollars of private equity” pouring into the single-family rental business”, says Justin Chang, principal of investment firm Colony Capital.
In the past six months, Colony has bought more than 1,000 homes to turn into rentals. Most are in Arizona, California and Nevada, though Colony expects to expand into Texas, Georgia and Florida. In the next year, it will invest at least $1.5 billion in single-family rentals, Chang says.
Val and I will be investing our savings in the Boise single family rental market this year. If you want to catch the wave, please contact us.