Skip to Content

Roommate Effect: Good News for Real Estate Investors

Roommate Effect: Good News for Real Estate Investors

Are you an investor or rental property owner who is worried about the future of your rentals? The good news is: you shouldn’t be.

According to the Census Bureau, homeownership rates were reported at 63% at the end of 2015, which is a 20 year low for Americans, and even dropped a point from last year end report data. The good news for rental property owners is that vacancy rates are dropping as well, proving the demand for rental units is still there. In fact, Zillow reported that the average rent rates are on the rise. Combine that with the fact that the US had over 700,000 new renters in 2015 alone. You can see a lucrative market for rental property owners.

3 Factors Combined Lead to the “Roommate Effect”

High debts, high rent rates, and low incomes have come together to create “the roommate effect.” Zillow also studied how the “roommate effect” will impact the rental market. Just like on popular sitcoms “The Golden Girls,” or “Friends,” or even “How I Met Your Mother,” adults today are doubling up in rental homes as a way to save money. In 2012, the number of American renters living with roommates or family members was over ⅓ of the adult population.

According to Stan Humphries, Chief Economist for Zillow.com, “All of these doubled-up households represent tremendous potential energy for the market. And when these compressed households begin to unwind and these millions of Americans do start to create their own households, demand will bounce back, possibly even causing household growth to outpace population growth.”

A Growing Market

Studies show that rental markets are stable and will be for some time. So now is a good time for investing in real estate. As the leader of property management companies Baton Rouge has to offer, Real Property Management Baton Rouge is here to help you as you grow your portfolio. Our overall goal as a company is to save property owners the time, money, and headaches often associated with rental property. We offer solutions for every aspect of Baton Rouge property management, and are experts on the local Baton Rouge area. As you continue to grow your portfolio, lean on our professional Baton Rouge property managers to guide you along the way.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details