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Demand for Residential Rental Properties Still Strong

The demand for rental units appears to remain strong, judging by rental price trends. Approximately half of REALTORS® responding in the REALTORS® Confidence Index Survey reported higher residential rents compared to 12 months ago. About 23 percent of REALTORS® reported conducting an apartment rental.

There have been reports that Millenials (the generation born approximately 1978/9 and subsequently) may be unable or unwilling to participate in homeownership to the same degree as previous generations–based on tough job markets and higher levels of student debt. This conclusion is not substantiated by a recent survey—but the Millenial generation is still evolving in preferences and age. In the July REALTORS® Confidence Index survey, approximately 52 percent of transactions went to clients aged 35-55 years old. Those aged 20 to 34 and under (that part of the Millenial generation currently of home-buying age) accounted for 26 percent of reported sales and numbered 28 percent of the over age 20 population.

Jed Smith, Managing Director, Quantitative Research

Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.

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Comments
  1. This bodes well for all the investors we sold short sales and foreclosures and even non-distressed income property to over the last two years. I learned the answer to this question long ago, “When is it a good time to buy real estate? It’s always a good time to buy real estate.” You just need to work with someone you trust and that goes the extra miles to do all of the due diligence that is required in any purchase regardless of market trends.

    Alexis Eldorrado
    Managing Broker
    http://www.Eldorrado.com

  2. Thank you for a valuable information, Jed.
    Our customers usually are over 35 – those buying and those renting out. 26% of sales – that is a big number though, and probably we should look into targeting a younger audience as well.