Tag: millennials

4 Rental Property Market Trends To Watch In 2023

Posted on by author

With the new year comes key themes and market trends that have carried over from 2022 and will continue to affect rental properties in 2023. While rent prices in Greater Austin have increased since the pandemic, we noticed a cool down at the end of last year that is promising coming into the new year. 

Take a look at 4 of the top rental market trends to watch in 2023:

Record High Inflation

Inflation is at a 40-year high, and everyday items like food and gas cost more than they used to. The price increase is causing renters to struggle with household expenses and paying their bills on time. Property managers should watch how high costs rise and have an open line of communication with renters, both of which will play vital roles in property management going forward.

Mortgage Rates May Continue To Rise

Rising mortgage rates have made it difficult for some would-be buyers to purchase homes, so they are turning to renting. As much as this affects buyers, it affects sellers’ plans, too. Sellers are shifting their plans to sell, and many are looking to rent out their homes since many buyers cannot afford them. 

Renters Looking For A Diversified Space

Working from home remains prevalent going into 2023, so many renters are looking for more diverse rental properties. In addition to a home office, renters are looking for properties with outdoor space, larger kitchens, and flex spaces. 

Single-Family and Suburban Area Rentals

Due to high inflation, rising mortgage rates, and remote work, renters are coming from many different age groups. While most renters are millennials, many baby boomer renters are tired of the upkeep of a home. This is leading renters to look for single-family properties in suburban areas.

While none of these trends are necessarily new, they are still important to think about going into 2023. If you have any questions or need recommendations, reach out to us! We are always here to help.

Vacation Homes Are the New Starter Home for Millennials

Posted on by author

Millennials are changing the way they buy houses and why they buy the ones they do. The usual path to homeownership and multiple homes was purchasing a single-family home to live in, then purchasing a second property as either an investment or a vacation home. But Millennials are changing it up by going out of order and buying their vacation home first. 

Why Are Millennials Buying Vacation Homes First?

One short-term rental platform discovered that millennials make up 40% of vacation homebuyers, an increase of almost 10% compared to 2019. It’s the largest share of any generation! Millennials cite reasons like extra income, building wealth, and having a property to vacation at as reasons why they purchase a vacation home as their first property. They get “the best of both worlds” as they continue to save for a down payment for their live-in home while also having an investment property to help pay the rent and mortgage. 

Remote work is a massive factor in this trend as the pandemic forced many workers to work from home. And working from home is an increasingly common work environment for younger Americans. With flexibility over work location, many Millennials seek a new location for vacations and remote work. Hence why vacation homes are taking a priority. 

Home prices are another factor as home prices have surged in many cities and metropolitan areas. Buyers consider new regions and locations to purchase a place, like in a rural location. Other living expenses are rising too, especially in popular cities. Homebuyers in high-rent markets use their vacation home as a loophole to avoid high home prices while still investing in real estate. 

Why Millennials Should Buy an Investment Property Home in Austin

Austin has ranked as one of the top U.S. cities for remote workers. Austin is known for its warm sunny temperatures and outdoor activities, making it a popular location for Millennials. With popular attractions like Lady Bird, Barton Creek, Lake Travis, and Zilker, there are endless opportunities for outdoor activities to choose from! 

It’s also quickly becoming the best city for employers as large entities like Facebook, Apple, Google, Tesla, and Oracle are expanding and relocating to Austin. More employers moving into the city will bring more residents moving for their jobs at these companies. And that means there will be more renters in the market for a home. 

Plus, Austin is already the #1 housing market for Millennials. A homebuying platform collected data of the 100 largest metro areas to find the best home markets for Millennials, Gen Xers, and Baby Boomers. Austin ranked #1 with Millennials and #1 for Gen Xers. The study found that Austin has 40 times more new millennial residents on average compared to the other 99 metros in the study. 

Contact us if you’re ready to buy your first investment or vacation home! Reach out to TALK Property Management–we are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.