Skip to content

Posts tagged ‘Housing’

16
Feb

5 Rental Predictions for 2017

In a recent Zillow article by Amie Fisher “5 Rental Market Predictions: What to Expect in 2017 (and Beyond),” Zillow’s Senior Economist, Dr. Skylar Olsen, predicts 5 rental trends for 2017:

  1. Overall Rental rate appreciation will stabilize this year. While the overall United States rental rate appreciation is staying around 1.5%, many West Coast metropolitan cities (Seattle, Portland, San Francisco and surrounding Bay Area, San Diego and Denver) won’t see their rental rate appreciation yet below 5%. Overall, there is more rental inventory available which is a large contributing factor to rental rates slowing down.

According to Apartment List, Inc. and their February 2017 rent report, rents increased slightly this month nationwide after four months of rental rate decreases. In 2016, the rental rate was significantly lower and did level off from the dramatic increases in 2014 and 2015.

us-rent-growth-2014-2016

2. Homeownership Rate will increase slowly as Millennial’s get older.  Many people have shifted to renting instead of buying since 2006. But, as Millennial’s get older and make more money, they feel that buying a home is an integral part of their personal freedom. Don’t worry, this shift is going to be gradual and over time so rental vacancies should not be affected yet.

3. Many renters are now being pushed to the suburbs. The Baby Boomers are looking to downsize from their larger homes, perhaps in the suburbs, and move to smaller homes in more walk-able neighborhoods. As a result, there is less inventory available in the urban areas and higher rental rates since there is not enough supply to meet the demand. More people are now looking to surrounding cities and suburbs to find lower rents and more options. Because of this shift, some of the fastest growing rental rates in the nation are in smaller cities and suburbs outside of the Nation’s most expensive metropolises.

rental-rates-increasing-in-secondary-cities

4. New home costs will increase due to rising construction costs. Most new home builders are moving their focus on high-end homes since the cost of construction and land is on the rise. This means that more people will still be forced to rent since the average person will not be able to afford the new home prices currently being offered.

Print

Source: The Zillow Group Report

5. Interests rates will increase. Over the past couple of months, interests rates have already begun to increase due to the change in administration. If they continue to rise over the course of this year, individuals and families who might have been considering buying will instead remain in rentals until the rates go back down.

Overall, the cost of rent has started to mellow out a bit but there are still some major factors that are playing into the current rental market nationwide and why we most likely won’t be seeing any major decreases anytime soon.

Luckily, the majority of all AvenueWest Managed Corporate Housing‘s rental properties aren’t affected by the major rental rate hikes impacting apartment communities since our properties are privately owned.  Rent like a local in one of our beautifully furnished or unfurnished properties. Call us today 1-800-928-1592.

Here are the nation’s 100 largest markets and their median rental rates and percent changes from Apartment Source, Inc.:

City Median 1BD Median 2BD M/M Price Change Y/Y Price Change
San Francisco, CA $3,420 $4,610 0.6% -1.5%
New York, NY $3,220 $4,110 -0.1% 1.0%
Boston, MA $2,790 $3,200 0.7% 0.4%
Washington, DC $2,140 $3,040 -0.3% 0.1%
Jersey City, NJ $2,540 $2,900 1.2% 2.1%
Los Angeles, CA $1,870 $2,600 -0.1% 0.5%
San Jose, CA $2,110 $2,600 0.3% -1.4%
Stamford, CT $1,920 $2,400 0.3% -0.6%
Miami, FL $1,850 $2,330 -0.9% -2.8%
Seattle, WA $1,650 $2,200 1.1% 5.3%
San Diego, CA $1,530 $2,000 0.1% 1.9%
Long Beach, CA $1,390 $2,000 0.8% 6.1%
Santa Ana, CA $1,550 $1,870 0.8% -1.5%
Denver, CO $1,350 $1,740 0.5% 1.1%
Anaheim, CA $1,400 $1,740 -0.6% 1.4%
Fort Lauderdale, FL $1,300 $1,700 -0.3% 2.2%
Atlanta, GA $1,370 $1,650 0.2% 2.6%
Dallas, TX $1,240 $1,650 -0.2% 2.3%
Minneapolis, MN $1,360 $1,600 -0.5% 1.9%
New Orleans, LA $1,400 $1,600 0.0% 1.0%
Chicago, IL $1,480 $1,600 -0.1% 1.1%
Portland, OR $1,380 $1,560 0.4% 0.3%
Philadelphia, PA $1,300 $1,550 0.2% -1.5%
Austin, TX $1,150 $1,450 0.1% 0.4%
Baltimore, MD $1,330 $1,400 -0.1% 1.0%
Houston, TX $1,100 $1,400 -0.1% -3.3%
Riverside, CA $1,000 $1,370 0.4% 2.2%
Aurora, CO $1,030 $1,350 0.3% 1.9%
Nashville, TN $1,340 $1,340 -0.1% 3.0%
Pittsburgh, PA $1,100 $1,340 -0.1% 2.6%
St. Petersburg, FL $890 $1,300 0.7% 2.4%
Manchester, NH $1,110 $1,290 1.1% 4.1%
Madison, WI $890 $1,220 0.1% -0.5%
St. Paul, MN $950 $1,200 0.6% 3.0%
Sacramento, CA $990 $1,200 0.0% 2.4%
Tampa, FL $1,000 $1,200 0.4% 2.2%
Charlotte, NC $1,060 $1,200 -0.5% 2.5%
Orlando, FL $1,040 $1,200 -0.2% 2.4%
Tacoma, WA $1,000 $1,200 0.1% 7.7%
Anchorage, AK $930 $1,180 0.6% -5.1%
Fort Worth, TX $950 $1,170 0.3% 2.8%
Virginia Beach, VA $900 $1,150 0.1% 3.2%
Vancouver, WA $960 $1,130 0.5% 4.9%
Richmond, VA $950 $1,100 -0.5% 1.1%
Durham, NC $910 $1,060 0.1% 1.5%
Milwaukee, WI $1,120 $1,050 -0.3% 1.8%
Corpus Christi, TX $830 $1,020 -0.2% -0.3%
San Antonio, TX $850 $1,010 -0.2% 0.3%
Raleigh, NC $930 $1,010 -0.3% 1.7%
Stockton, CA $780 $1,010 -0.4% 5.7%
St. Louis, MO $830 $1,000 0.8% 0.5%
Phoenix, AZ $840 $1,000 0.3% 5.2%
Colorado Springs, CO $810 $1,000 -0.3% 4.9%
Baton Rouge, LA $990 $1,000 0.4% 2.6%
Salt Lake City, UT $790 $990 -0.2% 1.5%
Arlington, TX $770 $990 0.2% 7.0%
Rochester, NY $830 $990 -0.3% -0.8%
Las Vegas, NV $830 $980 0.1% 4.7%
Jacksonville, FL $820 $980 0.1% 2.0%
San Bernardino, CA $750 $950 0.1% 0.5%
Reno, NV $700 $950 -1.0% 6.3%
Birmingham, AL $890 $950 -0.4% 4.1%
Grand Rapids, MI $810 $940 -0.1% 1.5%
Omaha, NE $750 $910 0.0% 0.2%
Providence, RI $840 $900 -1.1% 2.9%
Mesa, AZ $720 $900 0.0% 3.7%
Columbus, OH $750 $900 0.4% 3.0%
Boise, ID $750 $880 0.5% 4.5%
Norfolk, VA $730 $880 0.1% 2.2%
Lincoln, NE $680 $870 -0.2% 2.5%
Fresno, CA $750 $850 0.2% 2.6%
Kansas City, MO $780 $850 -0.6% -0.9%
Des Moines, IA $880 $840 0.1% -2.5%
Bakersfield, CA $700 $830 -0.2% -1.3%
Cincinnati, OH $700 $800 0.7% 4.4%
Albuquerque, NM $630 $800 0.4% 2.4%
Louisville, KY $680 $800 0.8% 6.3%
El Paso, TX $620 $800 0.1% 0.6%
Little Rock, AR $690 $800 0.6% 3.8%
Indianapolis, IN $710 $800 0.1% 1.0%
Lexington, KY $640 $800 -0.8% 2.2%
Spokane, WA $630 $800 -1.4% 4.8%
Knoxville, TN $760 $780 -0.3% 3.8%
Cleveland, OH $650 $780 0.0% 1.3%
Oklahoma City, OK $650 $780 -0.2% 2.2%
Greensboro, NC $640 $780 -0.3% 0.5%
Tallahassee, FL $660 $750 0.7% 0.9%
Tucson, AZ $550 $750 0.2% 1.3%
Tulsa, OK $570 $750 -0.2% -1.1%
Winston-Salem, NC $710 $740 -0.7% 3.8%
Mobile, AL $660 $730 -0.3% 4.3%
Memphis, TN $730 $730 0.3% 2.5%
Fayetteville, NC $580 $700 0.0% 0.9%
Toledo, OH $500 $700 0.1% 7.5%
Montgomery, AL $640 $700 0.1% 1.6%
Detroit, MI $600 $680 0.2% 2.8%
Columbus, GA $620 $680 0.1% -0.1%
Wichita, KS $510 $630 0.2% 1.9%
Fort Wayne, IN $490 $600 -0.9% 0.7%
Huntsville, AL $480 $550 -0.3% -0.2%
Advertisements
3
Jan

Millennial Mobility

Millennials are a hot topic right now and have been for the past couple of years with the changing landscape revolving around Millennials in the workforce, talent management, and mobility.

In the November/December 2016 addition of Workforce Magazine, in the article titled “Mobility Needs a Makeover,” Millennials are recognized as great candidates for global assignments since their relocation packages typically cost less than the “older, more encumbered peers.” According to George Bates, the Senior Vice President of Global Marketing and Sales for Graebel:

…Today’s businesses have a lot of reasons for relocating employees, and many of them have figured out that younger staff don’t need the same level of support…Younger employees are more open to the adventure that comes with an oversees assignment, and are often willing to voluntarily go with few if any additional perks. ‘They are young and hungry and eager to learn about a new culture.’ Inviting young, highly skilled employees to voluntarily relocate for a challenging work assignment has been a growing trend…for the past few years…It’s one of the many strategies mobility experts are using to cut the cost and complexity of relocation assignments, while adding value for employees. ‘There is a pervasive assumption among this generation that if they want a strong career, they need this kind of experience.’

According to a study compiled by Brookfield Global Relocation Services, 11% of the employees taking relo assignments are ages 20-29 and when mobility and talent management are combined, the number increases to 22%. Companies are really focusing on getting younger employees into their global leadership roles.

The relocation industry is shifting because of this growing trend of sending younger employees on assignments. More relocation packages are being offered now based on the needs of the company and the value of the employee. Younger employees are also typically easier to relocate since they don’t usually have kids and families to relocate, and since most Millennials rent instead of own, no property managers to find.  Millennials are craving these experiences and in exchange, aren’t necessarily looking for higher salaries and benefits to accompany their relocations.

Temporary housing is a large portion of relocation services. According to the 2014 Gen-Y Housing Survey conducted by the Urban Land Institute and UDR, there were some very interesting findings regarding what Millennials are looking for in their accommodations:

gen-y-housing-survey-summary-1

gen-y-housing-survey-summary-2

gen-y-housing-survey-current-location

gen-y-housing-survey-rental-structure-types

 

gen-y-housing-survey-time-spent-in-rentals

 

gen-y-housing-survey-benefits-of-renting

 

gen-y-housing-survey-features

gen-y-housing-survey-future-community-benefits

These figures represent what Millennial respondents chose in regards to housing. It is from the 2014 Gen Y and Housing Survey compiled by the Urban Land Institute and UDR.

So which cities are millennials relocating to here in the United States?

 

  1. Atlanta, GA
  2. Pittsburg, PA
  3. Memphis, TN
  4. Boston, MA
  5. Austin, TX
  6. San Diego, CA
  7. Seattle, WA
  8. Houston, TX
  9. Denver, CO
  10. Charlotte, NC

Good news, we have full-service, local offices in 4 out of these 10 cities and can assist our millennials with short-term, fully furnished temporary housing while they get settled into their new city. All of our properties include the features that are important to the Millennial respondents and even more!

For all of your relocation needs, your local AvenueWest Managed Corporate Housing office is at your service, providing exclusive residential properties including single-family homes, town homes, condos, and apartments.  All offices are licensed real estate brokerages and can help you find your perfect home once you are settled. Most of our offices can also help with unfurnished rentals as well.

We are local and know the cities and neighborhoods our properties are located. Plus, we have properties not just in major cities, but in the surrounding suburbs as well.

Submit a housing request, Search for a Real Property in our actual database, or give us a call today 1-800-928-1592 and a local representative will be able to answer all of your questions. You can also Message us on Facebook or Tweet us on Twitter

 

 

%d bloggers like this: