I’ve spoken and written before about emerging trends in the economy with regard to newer generations and their bias towards renting rather than owning real estate. While there’s a number of good reasons for people taking this approach, we’ve written extensively that the MidAtlantic is possibly an exception to this rule. MSN Money, in it’s recent article “Richest Counties in America” supports this. From Loudon County (#1 — average income $119, 540) to Fairfax and Howard counties (#2 and 3, respectively), 10 of the 15 wealthiest counties are in MRIS territory. Assuming the wealth of these areas holds up, then it would certainly make sense that demand for residential real estate, and thus prices, would be strong in the future.
Yet yesterday’s WSJ featured an article “Renting Prosperity” that is a must read for smart real estate professionals. No WSJ subscription is required for this article; it’s infront of the “pay wall.” Daniel Gross, the author, does a great job of outlining the situation and this provides us all with some good information to counter the trend with buyers in our area, or help to redesign service offerings to meet this growing market segment.
Our friends at Zillow last week bought a company called “Rent Juice” that provides tools for the residential rental market and both Zillow and Trulia have increased their focus on the rental market and listings with new mobile apps and calculators. Homesdatabase.com also includes rental properties as well. The rental section is here. Be sure to include all of your rentals in Matrix so they can be promoted worldwide.
As the chart below indicates, there’s substantial growth in the rental market and MRIS stats support this trend. Keep current with this dramatic shift in the economy to be sure your business remains relevant!