15 Top Drivers of the Rental Property Market

These 15 factors may influence the rental housing market most and of which cities will be best to invest in.

1. buyer market is young and unable to finance the purchase of a home
2. not enough single detached homes available to buy
3. risks in buying are high with high prices, rising mortgage rates and housing market uncertainty
4. millennials are career minded and not necessarily willing to buy now
5. bank of mom and dad may be running out of money
6. home and condo prices too high to purchase
7. buyers won’t buy due to mortgage finance restrictions and long term worries over a recession/market crash
8. cost of living rising
9. millennial preference for older urban neighborhoods with walkability
10. rents rising too fast compared to cost of buying a home
11. cap rates not sufficiently better than other investment options
12. immigration into US is still strong
13. retiring babyboomers having tough time places to move to
14. more good condos and apartments available because regulations are decreasing and construction techniques are better
15. The number and share of cost-burdened renters – those paying more than 30 percent of their income fell 2 per cent in 2017 — meaning renting is more affordable

If rental properties are even a quarter of the $36 Trillion US real estate market, we can say with confidence that it has major economic impact. The growth in rental apartment, rental condos, and home rentals is creating a lot of jobs including property managers, landlords, and the kind of passive income many investors need.

By Gord Collins of ManageCasa.com