Real Estate Trends in the Rental market

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Interesting article on the future of REI and the changing rental market from Morgan Stanley.

https://www.morganstanley.com/ideas/millennials-generation-z-housing?cid=dm-5030683:244497680:442294667:116099951&dclid=CjkKEQjwnMTqBRCMnrSelZf03M0BEiQAulNLda0fs85lCrPLWUKqCnbLVZdo_O8dpZz6pi1-YdDLjOfw_wcB

Net rentals could surge 22% over the next 10 years but home ownership could fall 54%. As usual this information is a double edge sword. Rental demand is good for my money because there is no emotion from my money. Home ownership falls by 54% which to me is dangerous for the economy and overall health of the nation.

There is also discussion of the emergence of the Ibuyer. Algorithm's tuned to the real estate criteria that analyze quickly and put in offers quickly. Again another double edged sword. For the people with big portfolios of real estate, It may be a lot easier to unload your portfolio when you decide to. For future rental buyers, we probably will be seeing increased competition.

REI Investing - Always interesting

“Net aggregate demand for rentals could surge 22% above long-term averages over the next 10 years," says Richard Hill, head of Morgan Stanley's U.S. REIT Equity and Commercial Real Estate Debt Research.

While demand for rentals is poised to rise, net aggregate demand for ownership of single-family homes could fall to 54% below its long-term average, as aging boomers sell primary and vacation homes. This divergence could open doors for REITs focused on single-family rentals, helped by the rise of iBuying platforms that streamline real-estate transactions.

Bob Hance

Originally posted by @Bob Hance :

Interesting article on the future of REI and the changing rental market from Morgan Stanley.

https://www.morganstanley.com/ideas/millennials-generation-z-housing?cid=dm-5030683:244497680:442294667:116099951&dclid=CjkKEQjwnMTqBRCMnrSelZf03M0BEiQAulNLda0fs85lCrPLWUKqCnbLVZdo_O8dpZz6pi1-YdDLjOfw_wcB

Net rentals could surge 22% over the next 10 years but home ownership could fall 54%. As usual this information is a double edge sword. Rental demand is good for my money because there is no emotion from my money. Home ownership falls by 54% which to me is dangerous for the economy and overall health of the nation.

There is also discussion of the emergence of the Ibuyer. Algorithm's tuned to the real estate criteria that analyze quickly and put in offers quickly. Again another double edged sword. For the people with big portfolios of real estate, It may be a lot easier to unload your portfolio when you decide to. For future rental buyers, we probably will be seeing increased competition.

REI Investing - Always interesting

"Net aggregate demand for rentals could surge 22% above long-term averages over the next 10 years," says Richard Hill, head of Morgan Stanley's U.S. REIT Equity and Commercial Real Estate Debt Research.

While demand for rentals is poised to rise, net aggregate demand for ownership of single-family homes could fall to 54% below its long-term average, as aging boomers sell primary and vacation homes. This divergence could open doors for REITs focused on single-family rentals, helped by the rise of iBuying platforms that streamline real-estate transactions.

Bob Hance

 Thanks for sharing this Bob.

This is consistent with other studies that show that Millennials will rent for a while, hence, the boom in apartment acquisitions in a lot of markets. We are seeing this trend in the city in Cincinnati where I primarily invest so it's good for apartment owners like me.

One thing I am watching closely is the price of single family homes. If it goes low enough that renting it or buying it actually makes more sense than apartments, the market will move towards SFs. The important thing is to be one-step ahead of the trend and you do this by watching and knowing your local market very intimately - down to block-by-block basis.