Trends of Apartment Renters in Commercial Real Estate
Purchasing residential rental units can be a highly lucrative choice for a commercial real estate investor. In fact, as of 2018, renters represented the majority of residents in 22 of the largest cities in the United States.
Apartment dwelling can be particularly appealing to many people, as it may be the most economical option. If you are considering investing in rental properties with apartments, you may want to familiarize yourself with recent trends among apartment renters. You might be surprised by the latest directions in which this common demographic is going.
Reasons Apartment Renters Move
People move into different types of buildings for different reasons. Today’s apartment dwellers may opt to live in a smaller building in order to save money, especially if they are planning for a family in the future. Other factors involved in such relocation might include the desire to live in a better neighborhood, as well as a more appealing home.
Those who are making the move to larger buildings might also do so to secure a better home, and they may seek a more desirable neighborhood, as well. As they form a new household, some may prefer a large building or complex for a sense of community. They might also relocate because of work or school transfer, selecting a larger building for a sense of security in a new place.
The Choice to Stay
Another major trend among apartment renters is to not move at all. In recent years, apartment turnover nationally is the lowest in decades. Renters of all ages seem to be staying in their current apartment once their initial leases expire. This should be good news for commercial real estate investors who seek stability in their tenants, which leads to a steadier income with less disruption.
If you are a commercial real estate investor, buying apartment rentals could be a solid option. Based on recent trends among apartment renters, now may be an excellent time to consider this investment decision. However, don’t let a current lack of financing deter you from success. Approved Business Lending offers solutions for investors. Contact us today for more information.