Forget Year of the Dragon, 2012 is the Year of the Landlord Says HomeVestors: "It's a landlord's market."
DALLAS, Feb. 1, 2012 /PRNewswire/ -- HomeVestors, the professional home buying network of independently owned and operated franchisees that is the number one buyer of houses in the U.S., agrees with Morgan Stanley's Oliver Chang when he says that 2012 will be the "year of the landlord."
For those considering investing in rental properties as a business opportunity, statistics reveal more than one-third of Americans currently rent their homes and this number is likely to increase.
According to David Hicks, co-president of HomeVestors, "The percentage of our HomeVestors® franchisees purchasing homes as rental properties has never been higher, and we have been in business for almost 16 years. As American families continue to struggle with job loss and decreased incomes, the need for a more flexible housing situation increases. Enter the landlord in what is becoming a win-win situation for those in need of affordable housing and those who can invest in providing it."
Chang posits that a five year market free fall has changed the way homeowners and investors view the current housing market. In the face of high national unemployment, ever-rising home foreclosures, and constantly falling home prices for six consecutive quarters, Chang writes that "rents are rising, vacancies are falling, household formations are growing and rental supply is limited. We believe the demand for rental properties will continue to grow."
For renters, several factors attribute to the increased demand for single-family housing. The idea of downsizing to apartment living is an especially difficult prospect for parents with children accustomed to the indoor and outdoor space a home affords.
Even with indications that the economy may be improving, many individuals still have difficulty getting a mortgage and potential homebuyers are slow to take on the commitment of purchasing a home. At the same time, the prices investors pay for single family residences are down from three to four years ago. Hicks added, "Bottom line: the return on single family rental investments is very attractive for those who have the means to establish themselves as landlords."
Hicks points out that rents will continue to be supported by a renewed growth in the population of young people who face continued uncertainty regarding their incomes and employment prospects, along with a steadily declining marriage rate. "The time to invest in being a landlord isn't near, it's now."
CONTACT: Susie Lomelino