Rental Property Trends to Know in 2023

Rental Property Trends to Know in 2023

Staying on top of the latest industry trends will help you make better investments and maximize your profits.

We have gathered thousands responses from property owners, renters, and property managers across the country to give you the top rental trends for 2023.

Demographics

Renter demographics constantly change. Buildium’s 2023 Industry Report predicts that there will be less single-person households, and single-parent families renting in 2023. Renters with children and multi-generational families will be more common in 2023, according to a href=”https://www.buildium.com/wp-content/uploads/2022/10/2023-2023-IndustryReport.pdf”>Buildium’s 2023 Industry Report/a>.

The economic pressures of the pandemic, recession and the increase in multi-generational households will have a multiplicity of implications for landlords. Multi-generational households will increase the demand for properties that have accessibility features.

Renters under the age of 35 are also on the rise. In the future, these renters are likely to want more space for their growing families. Smart landlords will adapt their properties to meet the changing needs of renters.

Geography

The gradual and steady transition from urban to suburban areas is a trend that you should be watching. Since 2020, the mass exodus from urban areas has increased exponentially. This is due to more remote work opportunities. The market has shifted away from urban areas by 12 percentage points as more people are working at home. Over two thirds (68%) Buildium survey respondents live in rural and suburban areas.

Since 2020, more than 1.2 million Americans are moving from the big city to a smaller or mid-sized town, a suburban area or a rural neighborhood. Not everyone who leaves the city wants to buy a home. The rental market is more affordable in smaller towns and suburbs for first-time landlords.

Financial Trends

The financial trends are probably the most important to remember. In the United States, the average income has increased in recent years. While incomes increase, inflation can often erode some of these benefits. Rents will continue to be highly competitive.

Housing affordability is a major concern for investors. This trend is particularly prevalent on the rental market. Rent affordability has gotten worse in both rural and urban areas. 24% of households spend more than 50% of their income on rent. It has never been harder to find and keep an affordable rental unit.

The property owner must be aware of the inflation, wage increases, and cost of living in their area. Renters are not the only ones who will be affected by the lack of affordable housing. The entire industry is at risk. Owners must ask themselves how to keep their investments profitable while not raising rents unreasonably. Some people feel that now is not the time to purchase a rental property. Working with a professional property manager is a great way to partner with someone who knows how to keep rents affordable while still making a profit.

As we near the end of COVID-19, another trend that you should be aware of is the increase in employment. This means lower rental rates for property owners as couples and families are happy to stay in their current homes. You’ll probably be able to keep your tenants for several years if you manage to locate great tenants.

Renter Expectations

When facing economic pressures, a surefire way to ensure your profits is to offer the services and amenities that renters will pay for. Technology is the most significant change in expectations of renters. Since 2021 the percentage of renters who prefer to pay rent electronically has increased by 26 points.

If they do not adapt, landlords who are slow to adopt user-friendly technology for rental properties will fall behind. These are the top services in technology that will set you apart from your competitors and impress renters.

  • Rent collection online automated
  • Online maintenance forms are simple and easy to use
  • 24 Hour Emergency Maintenance Hotline
  • Energy efficient appliances
  • Remote thermostat and alarm capabilities

Renting in 2023: Staying ahead of the trends

In 2023, it will be necessary to stay on top of the changes in renter expectations. A property manager can help landlords stay ahead of the trends in property management. This is a low-stress way to achieve high returns. The right property manager understands how the market changes and what your local renters want.

The benefits don’t stop there. Property managers are able to reduce stress for rental owners in three areas: finding quality renters, handling administrative paperwork and marketing their property successfully in a competitive marketplace.

You don’t need to search far for the perfect fit. You can find the right property manager for you if you want to ease your management load.

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