A recent article in the “Daily Real Estate News” quoted a survey from Freddie Mac of renters about how they view renting. The information is pretty much on target with other information I have gleaned from other sources, so I consider the information in the survey to be more of a confirmation of trends that I have seen in the Austin area and with our managed properties. Here it is:
- Renters are not likely to move even if there is a rental increase
- Overall percentage was 55% plan to stay
- Those who stated that they plan to move within the next 2 years dropped from 38% to 33%
- 60% of those aged between 35 to 49 stated that they plan on staying put vs. leaving even if there is a rental increase
- Generally, renters like where they live and feel good about renting
- Fewer renters are working towards home ownership
- Fewer renters are planning to buy a home within the next few years
- Of those surveyed who plan to move 59% plan on renting vs. buying a home
- This is a 55% increase over September 2016
- Tenants who expressed an interest in owning a home in the future dropped to 41% from 45% in September 2016.
So what does this tell us? Answer: That owning a residential rental that is in good repair and well maintained and located in a desirable area is a product that will have a tenant. Reading between the lines, it also tells me that the tenant will take some pride in residing in the property which should translate to taking care of it. All the while as home prices continue to rise in our area we have a tenant who is helping us increase our equity position in the property and provides cash flow.
How sweet it is!