Category: Rental Properties
Renting is becoming more and more of a trend in recent years and this is especially true when looking at the housing and rental markets in Birmingham, Alabama.
The Census Bureau reported a few years ago, that the home ownership rate in the United States has dropped more than 64% over the last 20 years. “According to Zillow… the U.S. gained more than 770,000 new renters in 2014 and combined with rising rents across the country, created a cumulative amount paid in rent to $441 billion.”
As rents continue to rise faster than home values in most areas, expectations are for another increase in cumulative rent paid. It is little wonder so many are searching for apartments and houses for rent in the Alabama area and are reaching out to property management companies for help.
Studies from renting agencies like Zillow as well as our own research here at our own agency have shown that since 2000, the need for apartments and homes for rent have continued to grow in rate as well as frequency. Studies have also shown that even though it is costing more to rent it is costing even more in many cases to own a home with current mortgage and loan rates. In addition to these findings, it is becoming apparent that more and more adults are choosing to rent and have roommates.
This is being accredited to the rising cost of renting along with lack of incomes, high level of debt, and the availability of renting options in many Birmingham neighborhoods. It’s not just millennials choosing to rent and live with roommates; the number of Americans living with roommates or adult family members has reached a staggering one third of the adult population in the US back in 2012. This trend has continued strong for apartments and property rentals today.
This is very interesting to look at from the rental agency’s point of view because this “doubling up” effect of rental roommates has created great opportunities for renters and those looking to rent. “All of these doubled-up households represent tremendous potential energy for the market. If and when these compressed households begin to unwind and these millions of Americans do start to create their own households, demand will bounce back, possibly even causing household growth to outpace population growth” (Stan Humphries).
What this means is even when roommates part ways and head out on their own there will be an increased need for both rentals and home ownership. Some will buy a home and set down roots while others will still look for rental homes as the way they will go even when they are on their own.
This is a win-win for everyone because the maturing millennials can find options that fit their needs, whether it is home ownership or another rental and the markets both can benefit from the nee influx into the market.
We have seen this trend in the Birmingham Housing Market over the past few years, and our property manager experts and analysts expect this demand for rentals to last throughout the following years. Let us help you find the rental properties that can best suite your needs, no matter what stage of life you are in!