Rentals are on the Rise

In 2019, industry reports say that people are opting to rent rather than buy. Since 2004, the number and share of rental households in the U.S., especially higher-end rentals in urban areas, have steadily increased. According to the Joint Center for Housing Studies of Harvard University, 40% of recent additions to the rental stock charge $1,500 or more per month.

With this comes an interesting side effect: the demand for ‘portable’ home improvement products. When looking for custom upgrades to put in homes, consumers are often looking for upgrades that can move with them, such as freestanding wine fridges, massaging showerheads, and entertainment centers instead of the built-in versions of these amenities. This is important information for product developers.

Some are bullish on the market continuing to stay strong, though growth may be more moderate, with the fastest traction moving to new cities and suburbs. Others say their markets are already in correction territory and expect that to deepen in the next few years. Both could be more problematic for house flippers, speculative builders, and those in ultra-prime locations that already have extremely lean yields.

Whichever direction house prices go in 2019, it’s only likely to lead to more demand for renting, and likely to be a great year for landlords who are making smart acquisitions and demand for their units. If you’re concerned about your house flipping business or if you’re developing condos or spec homes, this might be the year to move to or add rentals into the mix.

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