If you’re a real estate investor or landlord, it’s important to stay up-to-date on the latest trends in property management. These 2018 trends shape the residential real estate landscape and impact what it means to be an investor and property manager in the Austin, TX area.
1) Millennials remain the most significant demographic of renters. In fact, the Millennial generation was named the largest generation in the nation recently, a title formerly held by Baby Boomers. Of the 45.9 million renting households in the U.S., approximately 18.4 million are Millennial renters. Because of this, they will be key influencers of real estate trends in 2018 and beyond.
What’s the impact on property management? Real estate investors should seek properties in Austin that have broad appeal to Millennials. Desirable features include smart home automation, online rent payment portals, pet-friendly accommodations, and locations convenient to restaurants and shopping.
2) Smart home automation popularity will grow. A 2016 study* indicated that 71 percent of home buyers were willing to pay more for a home that included smart home technology.
What’s the impact on property management? Because smart home technology has become both more affordable and widely-used, renters will grow to expect it. Real estate investors should strongly consider adding smart home features to rental properties in Austin.
3) Generation Z will move up the rental ranks. 2018 is the debut of Generation Z or those born after 1995. Studies indicate that Gen Z will comprise 40 percent of all consumers in 2020.
What’s the impact on property management? Because they’ll likely dominate Austin’s rental market in the near future, it’s important to understand the preferences and interests of the youngest adult generation. Gen Z will expect even more digitization than Millennials, so connections via social media, a robust online presence, and smart home features are a must in a rental property.
4) Suburban areas make for solid real estate investments. Areas like Cedar Park, Round Rock, Buda, Kyle, Leander, and Georgetown are all great locations for real estate investments and rental properties.
What’s the impact on property management? Even though Millennials love the buzz of the downtown Austin lifestyle, stiff competition among tenants is making it difficult for many renters to afford space. Because of this, demand for rentals in suburban areas is rising dramatically. Because renters base much of their rental decision on lifestyle and livability, they are in search of areas that draw people together, and that kind of connectivity can be found in many suburban areas.
These 2018 trends are significant, and they are impacting the greater residential real estate landscape throughout the Austin metro area. If you’re considering investing in real estate in Central Texas, or if you’re looking to acquire additional income properties, I’d love to provide seasoned guidance to maximize both your rental rates and your ROI. If I can be of service, please contact me today.
*2016 Coldwell Banker study of more than 1,250 American adults.
Photo by Bence Boros on Unsplash
