In terms of real estate investment, residential buildings have always been a good investment choice. In recent days, however, apartment buildings are becoming more lucrative. This is due to the trends in today’s renter’s market. In the US, people are moving at a lower rate than before. Since renters are moving from apartment buildings less often, this means that apartment buildings could be an even better investment. Here is what you need to know.
How Often Renters Move
Nowadays, renters are moving less than they have in the past. In fact, throughout the US, the rate is historically low. This is particularly true of those who reside in small apartment buildings. The moving rate is around 15 percent throughout the US and when it comes to residents of small buildings, the rate of moving has dropped from 34 percent to 29 percent. In large buildings, the rate has gone down from 26 percent to 29 percent.
Why Renters Move
When you have to think about real estate investment, it’s important to know why people may or may not move. Often, you can split renters into two different categories. The first category is those who move to small apartment buildings and those who move to larger apartment buildings. There are significant differences between the types of complexes that factor into why renters move.
For those who move into smaller buildings, the most common reason is that the tenants are starting a family or building their household. The other leading reasons are looking for a better home or to look for a better neighborhood. Often, people will be looking to move for a mix of all these factors, rather than just one or the other.
Now, when you look at the renters who move into large buildings, their main reason is to find a better neighborhood or to find a better home. Other reasons include being close to family or for a new job. In general, every renter is different and will have his or her own reasons to move into a new building. It’s important for you, as an investor, to be on the lookout for trends.
If you’re considering real estate investment, then it might help to look at the different trends. Real estate investors are beginning to look more closely at apartment buildings as lucrative business options. This is because more people are choosing apartment complexes and fewer tenants are moving out.