More than 43 million American families now rent homes rather than buying them. This figure has been on a steady upward trend since 1975, and analysts expect it to continue along those lines during the years to come. In fact, considering the constant decline in the number of available rental units, some experts say the uptick is actually gaining more steam in recent years than in the past. Though many people still seek out single-family homes, the majority are opting for apartments.
Because of all this, investing in apartment complexes and new developments is becoming an increasingly sought-after venture. In light of the growing popularity and trends of the past, it’s essentially a surefire investment in the eyes of many authorities. Since demand is outweighing supply at the moment, getting in on the ground floor of a new complex could be particularly lucrative as noted over at NRIA.
Why Are Apartments Becoming So Popular?
Apartments are becoming more popular among renters for a number of reasons. In the past, more affordable rental rates were one of the primary driving forces behind this turn of events, but that’s not necessarily the case at this point. In many areas, apartment rental rates are more expensive than those of single-family homes and rival monthly mortgage payments. This doesn’t only apply to high-end listings, either. Apartments’ other strong suits are apparently outweighing potentially lofty rent.
Homeownership comes with quite a few added expenses. Insurance, routine maintenance, unexpected repairs, and utilities are only a few of the most common and significant. Though most apartment complexes require their renters to maintain a certain amount of insurance coverage, renters’ policies are typically much more affordable than homeowners’ insurance. Maintenance and repair costs fall on the shoulders of the property owner rather than tenants in apartments. In some cases, certain utilities are included in the price of the rent as well.
Rental rates and mortgage payments may be nearly equivalent. Still, those extra expenses certainly make a difference. When all those costs are factored into the equation, apartment living could easily fall on the more affordable end of the spectrum.
Less Work Involved
Being a homeowner also entails a great deal of physical exertion. To reduce their living expenses, many carry out routine maintenance, repairs, yard work, and other tasks on their own rather than hiring professionals to do the job. All those aspects are handled by maintenance and landscaping teams in apartment complexes. The property owners or managers take care of the scheduling and costs, and the renters enjoy the results.
Greater Sense of Community
In many cases, homeowners spend years living in a neighborhood without even speaking to their neighbors. People may offer a halfhearted wave or smile in passing, but they rarely talk to one another. Apartment living is quite a bit different. In a home where it’s difficult to step out of your front door without literally bumping into the neighbors, breaking the ice is much easier. Some may see this as a negative aspect more so than a positive one, but there’s plenty to be said for getting to know the people who live around you.
As more people veer away from homeownership in favor of renting, the demand for rental units is only going to grow. Since apartments are rapidly becoming the option of choice for renters, investors can’t go wrong by becoming involved in such a venture. If you’re looking for a new investment opportunity, consider this to be a little food for thought.