Owning a home has long been considered the American dream; but, following a slow recovery from the latest housing crisis, an increasing number of people are choosing to rent instead of buy. However, instead of apartment living, tenants are turning to single-family rental homes as an alternative to ownership. According to the property management team at Realty Roundup in Elk Grove, CA, this trend is largely attributed to Millennials and those entering their retirement years. Below, they discuss how the real estate market has been affected by the growing popularity of rentals.  

New Home Construction 

Recognizing the move Millennials are making toward renting instead of buying, housing firms are investing in more single-family home construction projects with the intent to rent rather than sell. Rental homes satisfy the demand for housing in areas where land and lots are plentiful, but the income isn’t sufficient to buy. 

Neighborhoods & Property Value 

For numerous homeowners, renting out their property offers a viable solution to avoid foreclosure. In most cases, this is also the best option for neighborhoods as a whole, since foreclosed and vacant properties often bring down the value of the houses around them. Further, Millennials are known for taking as much pride in the homes they rent as their neighbors who own. As such, they can be counted on to keep their rental well-maintained, further boosting the appeal of a community. 

Buy & Flip vs. Buy & Rent 

In recent years, many real estate investors have enjoyed great success with flipping houses. Despite this, buying and renting is becoming a lucrative alternative to consider. Acquiring properties at or below market value, doing basic updates, and then renting them out allows investors to enjoy a consistent revenue stream. The strategy provides long-term appreciation, leveraged acquisition funding, and lower capital gains tax rates. 

As more people begin to realize the financial and lifestyle benefits of renting over buying, the single-family rental home market will continue to grow. Whether you’re searching for the ideal living space or need assistance managing a property, the team at Realty Roundup can help. They have been successfully matching prospective tenants with quality properties throughout Elk Grove, Stockton, and Galt for over 30 years. Contact them at (209) 477-1594, or visit their website to view current vacancies.