Save Money in the New Economy
You may find you have grown tired of your stock portfolio, 401(k) or mutual funds dictating your return on investment (ROI), or perhaps you continue to watch your savings or money market account barely generate an interest of one percent. In these cases, you may look at a future money trend of renting a property as a new source of income.
Growing Trends of Rental Markets
For those who have extra money to invest, rental properties continue to remain an area of growth, and that trend shows no signs of slowing down. However, the rental market has shifted away from the Silicon Valley cities of San Francisco and San Jose, California, where rental prices now compete directly with the cost of owning a home.
Atlanta is the main city on the rise. The Falcons and The Braves are building new team stadiums, and estimates suggest those stadiums will lead to the creation of 75,000 new jobs. Additionally, the housing market has not recovered as quickly there, so those who have the money to invest in a rental property can take advantage of asking for higher rents because of the increase in market demand for rentals.
Las Vegas follows a similar trend. The National Hockey League (NHL) approved the expansion team of The Vegas Golden Knights, and The Oakland Raiders look to move to Sin City. These stadiums will create jobs, although lower-paying ones, which favor renting over home ownership.
Retired baby boomers still head to Florida, and Orlando now takes the second spot when it comes to residential growth. The Orlando market follows the rule of supply and demand, and with Walt Disney World heading its tourism market, investors can take advantage of affordable rental market pricing. Like Las Vegas, hospitality spurs job growth in this city. However, the jobs are lower-paying ones, which again predict that residents will seek out rental properties.
How to Take Advantage of Rental Markets
Anytime areas see job growth, there is a good chance the rental market in that area will grow. Seattle serves as a prime example. Amazon, which is headquartered in Seattle, continues to expand its operations, needing more support at its headquarters. Furthermore, Chicago, Detroit, and Memphis, Tennessee show signs of a profitable market for investors as housing prices remain low in comparison to rental ones, favoring owners over tenants.
While the market will shift back and forth between a buyer’s or renter’s one, not everyone will want to take on the responsibility of being a homeowner. Therefore, a need will always exist in the rental market space. Investors just need to know where to look.
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