We’re in a Rental Explosion!
Home ownership has dropped from a high of about 69% in 2007 to about 63% today, and that rate continues to shift toward a higher percentage of renters. Economists have observed that Millennials are postponing when they get married, postponing having kids, and correspondingly, postponing buying houses. They more rapidly move from one job to another which often means moving from one city to another and thus don’t want to be tied to owning a house. This all leads to higher demand for rental houses applying upward pressure on rental rates.
Not convinced? The proof is in the numbers…
As you can see, 2017 has seen an increase in Rental Sales Volume and a decrease in Rental Inventory indicating that low rental availability continues to push the market upward, leaving more and more money on Atlanta’s Rental Table.
THE SOUTHEAST IS A MORE FAVORABLE MARKET FOR LANDLORDS.
In general, states in the Southeast have landlord/tenant laws which are more favorable to the landlord when compared to many states on the West Coast or in the Northeast. Landlords can recover a property from a non-paying tenant in a matter of weeks rather than months. Additionally, the southeastern US correspondingly has a greater supply of rental houses at more affordable purchase prices and rents. Investors can get positive cash flows and tenants can afford to raise their children in single family detached homes rather than apartments.
ATLANTA: A GREAT MARKET WITHIN THE SOUTHEAST TO INVEST IN RENTAL HOUSES.
The four states across the Southeast experiencing the highest rates of growth with respect to population and new businesses are Texas, North Carolina, Florida, and Georgia. The growth in Texas is spread among several cities including Dallas/Ft. Worth, Houston, Austin, San Antonio, and others. In North Carolina, the growth is spread between Charlotte, Raleigh/Durham, Greensboro, Asheville, and Wilmington. Florida’s economic growth is spread among Tampa, Orlando, Miami, Jacksonville, Gainesville, and all along the panhandle.
In Georgia, the vast majority of economic growth and development are taking place in Metro Atlanta along with the port city of Savannah. With no geographic barriers to expansion, such as oceans or mountains, along with the abundance of affordable land and nationally ranked schools, Atlanta’s suburbs continue to expand. These suburbs are filling as rapidly as the houses are built with approximately 1/3 of the new occupants being tenants.
Source: Statistics and Graphs are from the 2017 National Single-Family Rental Research Report published by HomeUnion™
Markets with a high Opportunity Ranking are those that are favorable in price, supply/demand, and growth potential (ie limited threats). Because of this, Excalibur Homes, The Dan Nelson Team, is helping several investors with the purchase of investment homes in Atlanta that carry positive cash flows and favorable appreciation expectations.
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