A recent study shows that there is a coming surge of renters looking to become homeowners. According to a TransUnion study of the U.S. rental market, 55% of those who hopped mortgages in the 1st quarter of 2017 were not homeowners and were renters. This is a 50% increase from the same period in 2016!
US Rental markets have enjoyed sustained growth for some years now. However, occupancy rates have flattened from their peaks according to the senior vice president of TransUnion’s rental screening group.
The report shows that millennials’ interest in home-ownership is finally growing. With 29% of having of those shopped for a mortgage in 2017 coming from millennials.
The shifting preference from renting to home-ownership will affect brokers, agents, property managers and real estate investors alike. This uptick in mortgage shopping could be a precursor to further declines in occupancy, which could impact rent growth in weaker markets. On the positive side, more home-buyers means that prices may continue to climb allowing buy and hold investors to liquidate some assets and take profits.
Prudent investors are taking a pause to understand their values and assess their equity growth in preparation for an inevitable shift in some US markets. To find out more about your investment property and how you are positioned in the market today, contact an expert today!