If you’re an agent who works with rentals, or simply an agent who likes to stay informed about the real estate market as a whole, you’ll be interested to read about some bold predictions for the year ahead.
The Yardi Matrix Winter 2016 Multifamily Outlook is exposing some of the trends in the U.S. rental real estate market for the year ahead.
The hot topic this year is rent growth. Over the past few years, the yearly rent rate growth soared beyond 6% nationally. Will this continue in 2016? Yardi Matrix projects that 2016 will be another year of climbing rents – a 4.6% increase nationally — led by many of the same hot markets that produced increases in 2015.
The West leads in forecasts for the greatest rent increases in 2016
The top 4 culprits are the Western cities of Denver, San Francisco, Portland and Sacramento. Apartments for rent in Denver are expected to see a whopping 11.2% price increase. Already outrageously expensive, San Francisco rentals are predicted to take a huge 11% leap. Leasing an apartment in Portland will suffer a painful 9% cost increase. These markets are known tech company hubs that offer the lifestyle and jobs that attract Millennials, the primary renter-aged generation.
Following closely is Sacramento, which benefits (so to speak) from the proximity to the hot San Francisco market. Rental apartments in Sacramento are likely to see price increases as high as 8.8%. Fifth on the list is the Southern city of Austin, which is known for attracting a young, highly educated workforce. Rents for apartments in Austin are anticipated to jump 8.0% this year.
- Economic Expansion: During 2016, forecasts call for moderate U.S. GDP growth and the creation of roughly 2.5 million jobs.
- Strong Renter Demand: The large Millennial and Baby Boomer generations are expected to drive demand. Through the end of this decade, Millennials remain the main players, supported by promising job prospects. Boomers are increasingly likely to rent as well, for reasons of finance and convenience.
- Moderate Supply Growth: Rental development project completions across the 111 markets Yardi Matrix tracks will total 335,000 apartments for rent expected to hit the market in 2016. New stock is needed given the robust amount of demand from new households, the exceptionally high occupancy rates in most metros, and the growing problem of affordability.
- Healthy Capital Markets: The flood of multibillion-dollar investment capital into U.S. multifamily real estate is expected to continue.
For real estate professionals, the question remains whether rising rents will give Millennials a nudge toward homeownership this year. An improving economy, job growth, and rent affordability in some markets may result in a share of renters looking to purchase a home in 2016.
RENTCafé and Yardi Matrix, our affiliated companies, are specialized in the apartment market and cater to rental property owners and renters.
2015 was a great year for Point2 Homes! Our listings portal attracted a record traffic that exceeded 27.2 million visits over the last 12 months.
Home buyers, sellers and renters have browsed 152,332,516 pages on Point2 Homes in 2015 – 58% up from the previous year. This translates into roughly 18,000 (!!!) listings browsed every hour on our site.
Here are the highlights of the year:
And what does this mean for you, the agent? Over 407,000 buyers and renters have contacted agents through the contact forms provided on the site. This is an impressive 66% increase in leads from the previous year, which speaks for the quality of the traffic.
We are also happy to say that we’re off to a great start to 2016! The first few days of 2016 have already brought us very close to daily all-time highs, in a period when the buying and renting season is far from its peak. We are expecting another very strong year with a predicted increase of at least 30% in traffic and leads.
If you are not a Point2 Agent yet, now is a great time to partner with us and grow your business in 2016. Create a Point2 Agent account and add your listings on Point2 Homes. Then take advantage of our premium features and advertising options that allow you to increase your listings’ exposure on Point2 Homes.
As to our Point2 agents, thank you for being our loyal partners this past year. Here’s to a prosperous year for your business in 2016!
If there was one wish you could make for your business for 2016, what would it be? If you wished for more leads, we have just the right tools for you, and at a discounted price!
It’s that time of the year again!
For 10 days only, you can save up to $350 on the Point2 Agent lead-generating toolkit.
If you’re new at Point2, now is a great time to get our all-in-one marketing solution, including a mobile-friendly, search engine optimized website and listing syndication to boost your exposure.
With Pro you also get CRM and lead management tools such as drip email campaigns, advanced prospecting tools, custom forms and Google Analytics Integration. Or if you choose Elite, you get all the Pro tools plus advanced broker tools such as team websites, automated lead routing, multiple user accounts, and more.
If you’re an existing Point2 Agent, upgrade to Pro now or go bigger with the ultimate tools in Elite.
Save $120 on Point2 Agent Pro!
- $1,000 worth of Featured Ads on Point2 Homes – 3 Featured Listing Ads and 1 Featured Agent Ad included every month
- 5 single-property websites
- drip email campaigns
- advanced prospecting tools and more
Only $429 for one year, reg. $549
Save $350 on Point2 Agent Elite!
Streamline your work with the powerful Elite tools for brokers and teams:
- $6,000 worth of Featured Ads on Point2 Homes – 20 Featured Listing Ads and 5 Featured Agent Ads included every month
- all the features included in Pro
- unlimited property websites
- advanced broker tools (team websites, automated lead routing, multiple user accounts, and more)
Only $949 for one year, reg. $1,299
Installment payments are available for both offers. Lock down your special rate with multi-year payment options.
This is a limited time offer valid until December 16th. Hurry!
Call 1-888-277-9779 today to claim your discount!
Prices are prorated for upgrades.
Your subscription may be tax deductible (check with your tax professional).
Disclaimer: This is a limited time offer available only for yearly accounts for new clients or upgrades. Discounts cannot be combined with any other discount or special offers.