Area Demographics/Research Question
Hey all,
I've been lurking in the shadows for some time now and decided to step out in order to ask for some help. I'm new to the game and have spent the last year or so learning as much as I can through BP and other reading materials. I'm from the Atlanta, GA area and I'm looking to invest in the west suburbs of the city.
Does anyone have any insight into whether it is more advantageous to purchase buy and hold properties in an area with higher owner occupancy or an area with higher renter occupancy?
I would assume that with an increase in renter occupied units in an area, the competition would be higher and therefore it would make sense to go outside of the area of competition (given other demographic information indicates the area is still appropriate for a buy and hold strategy).
I'm wondering if higher owner occupancy rates means that there is little demand for rentals in the area or if it means that there is a low supply of rentals in the area. Would vacancy rates for an area with high owner occupancy be larger than an area with high rental occupancy given that:
- Increased competition can lead to higher vacancy rates (in the case of high renter occupancy)
- Low demand could also lead to high vacancy rates (in the case of high owner occupancy)
The two neighborhoods that this information applies to are within a few miles of each other and most other demographic information is similar across the board.
Any help is much appreciated!
Thanks,
Brad