Tuesday, November 29, 2011

Realtors moving from home sales to rental property management

As we enter into the 4th year of the bursting of the housing bubble, a change in the paradigm of property management is being forged as Americans move away from home ownership and back to renting.

Just as the U.S. housing boom gave birth to such homebuyer websites as Zillow Inc. and Redfin Corp., services for rental properties are thriving following a surge in foreclosures and stiffening of mortgage standards. Membership in the National Association of Residential Property Managers has almost doubled in five years to a record 3,400 members, according to the Chesapeake, Virginia-based trade group.
“We are riding this sea change in how housing is changing in the U.S.,” said Reggie Brown, chief executive officer of All Property Management LLC, a Seattle-based Web service that sells property managers leads on homeowners who want to lease out their properties. “The only growth is rentals.”
Renter household formation surpassed new owner-occupied homes in 2007 for the first time since 1985 and has held the lead since, according to U.S. Census Bureau data. An average of 718,500 renter households a year were formed from 2007 to 2010, while owner-occupied households decreased at an average annual rate of 147,250 during the same period.  - Bloomberg

More than anything, this trend proves the failure of a government policy which attempted to open up home ownership to a sector of Americans who could not afford to buy, and by doing so, created a housing bubble and credit crisis that may take a decade or more to sort out.  The good side of all of this, is there are millions of new homes, some which are in the McMansion categories, that are available all around the country for a relatively decent lease rate.

1 comments:

Really great information in your blog. Please write more so that we can get more updates in your blog. Thanks a lot!

GoRenter

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