2014 is quickly drawing to a close and with 2015 right around the corner, many investors who have the goal of building an income producing real estate portfolio are wondering what we can expect in the rental market for the coming year.
Greater Demand for Rental Homes
In 2015 there will be a greater demand for rental homes compared to the last two years.
Much of Generation X and Y are still not showing signs of wanting to settle down and purchase starter homes as their parents or grandparents may have done generations before them.
According to recent statistics from Gallup, we know that close to 20% of adults between the ages of 24 and 35 years of age are still living at home with their parents.
Scared Off From Buying A Home?
One of the biggest reasons for the decline in purchases over the last five years could be attributed to the collapse of the Real Estate market in 2007. The younger generation saw their parent’s retirement incomes and equity in their homes destroyed by the economic collapse and they have decided to not make the same mistake.
Volatile Jobs Market
30 years ago it was common for people to expect a great job after high school and college which would last them for decades. In those years it also made sense to buy a home as soon as possible.
Today the average person works multiple jobs including independent contractor positions to bring in an income.
With unstable jobs or careers, people who would be able to get pre-qualified for a mortgage loan are delaying their plans to purchase ahome.
Loan Rejection Is a Reality
Last, loan rejection is a reality in 2014-2015. Many prospective home buyers have a high debt-to-income ratio, not enough money for a down payment, and an unstable employment history.
What Do These Things Mean For You?
2015 is going to be a great year to own rental properties in the Portland area and Grid Property Management will help to make managing those properties easy and profitable for you.