Landlords Market Demand For Rentals

Dated: October 1 2014

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A weak economy and stagnant housing market is good news for one group of Americans: Landlords. Although they’re already known for driving a hard bargain, they’re about to get tougher.

Since the recession, the demand for rentals has risen and monthly rents are also getting pricier. A majority of property managers (62%) say rents will rise 6% over the next 12 months and 85% of them say they’ve already risen over the last year, according to the annual survey of property managers and owners by In fact, 50% of property managers saw an increase in the number of former homeowners seeking apartment rentals since 2013 and they report that vacancy rates have fallen to 8.3% this year from 8.6% last year and 10.9% in 2009.
Landlords are also getting stricter. “They’re giving less concessions to renters because they have less vacancies,” says Niccole Schreck, senior brand manager at “It’s now becoming more competitive for renters.” More than half of property managers (57%) say they don’t have to give concessions to renters such as a free month’s rent, waiving a monthly deposit and/or offering a deal on the rent, versus just 45% last year and 22% in 2010. In 2014, 43% of property managers noticed a decrease in vacancy rates — 29% faster than 2013 — meaning it’s easier to find a tenant. 
Locked out of the housing and jobs market, young Americans need somewhere to live. Some 41% of property owners noticed an increase in the number of millennials renting over the past year, found. They are struggling more than other age groups: 40% of unemployed workers are millennials, according to an analysis of U.S. Census data by the Georgetown University Center on Education and the Workforce, greater than Generation X (37%) and boomers (23%). What’s worse, only 11% of landlords offered a lower rental rate in 2014, down from 68% five years ago.

Many millennials who are leaving their childhood homes are not buying homes, data released last week shows. The rate for 18- to 34-year-olds heading up a household fell to 36.6% in 2014, down from 36.9% in 2013, even though the number of millennials living at home with their parents is also falling slightly (31.1% in 2014 versus 31.2% in 2013), according to U.S. Census data. The data suggests that they’re not renting or buying, but actually moving in with siblings and other relatives, says Jed Kolko, chief economist at real-estate website Trulia.
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Angelo F. Terrizzi Jr.

I am a New England native, born and raised in the Boston area. Growing up, I was always involved with extra-curricular activities through school and church. I spent 30+ years in Business and later in ....

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