How to determine if a market is rental saturated

2 Replies


I was wondering what everyone's techniques to determine if a potential area has too many rentals?

I have yet to buy a property, but have my eye on some potential areas. I have started to compile a spreadsheet of rentals in each area noting asking rent, size, rooms etc. I know after a year or so this will paint a good picture, but for now my data is limited to, well what is for rent right now.

Can't help but feel there is an easier way?

Thanks for your input!

Contact at least 3 managment companies and 3 real estate agents/professionals who deal with property management in your area.  (just Google them)

Both of the resources will help you in determining rent in your area.   They do this full time and have been doing it.   They can tell you the best areas to invest in and what area is declining in an way.   Some also have insite on commercial construction getting ready to happen.    If a hospital or warehouse is being build in an area, this means jobs, this is a good thing.   

@Pete Kirby  

My advice is not to determine whether or not to purchase based on an area having a lot of rentals. Rather -- Look to see if the area you are wanting to invest in will always have a need for rentals. For example --- investing in a city with several large companies will always have a strong need for rentals because large companies bring in clients from around the US for "relocation stints" (1-2 year stays) .  Find a location that always has a need and you never will have to be concerned with the number of rentals but rather being better at attracting these clients when it's time to rent your property (I.e. Post more often ; post in more places ; be unique and catchy in some way)

Hope that helps

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