What will happen to renting homes?
As we slowly return to normal after the great 2020 pandemic a question I am often asked is what will become of the rental market? To be honest, my experience tells me that the rental market will be stronger than ever for the next 2-3 years!
Why you say? Well people have to live somewhere and there are 3 main choices-buy, rent, or live with Mom. So why rent?
People buy houses when they are financially and emotionally in good shape. This pandemic shows how quick you can go from stability to filling out food stamp paperwork! Its going to take a few years for people to get comfortable again.
Many people took a financial hit when they l
ost their jobs and quickly realized how quick you run out of money in a real catastrophe. And if you were one who saved and bought some mutual funds, or stocks-they also dropped 50%. Many people ate their money they were saving for a down payment so they need a few years to save it back up.
So the bottom line-buy a rental and make it nice to attract tenants and be prepared to have increased rent and increased profit for the next 3-5 years!
By Dennis Swartz, MBA, Licensed Real Estate Broker with almost 40 years
experience in real estate investing and teaching