The landscape of real estate is evolving throughout the U.S., presenting both challenges and opportunities for tenants, homeowners, and property managers alike. Let’s delve into four key predictions that may shape the market in 2024 and discuss their implications.
1. An aging population will fuel the demand for accessible rooms for rent
The United States is witnessing a significant demographic shift, with more older adults choosing to rent their homes. By 2030, over 20% of Americans will be of retirement age, marking a substantial increase. Between 2010 and 2020, the number of older adult renters surged by 32%. As this trend continues, there will be a growing need for accessible and affordable properties and rooms for rent to cater to the unique needs of this aging population.
As the nation’s largest coliving marketplace, PadSplit provides rooms for rent in rental properties throughout the country. This allows more retirees on fixed incomes to secure affordable housing in modern and secure homes at lower rates.
2. Sun Belt market: a new hotspot for renters
There will continue to be unprecedented population growth in the Sun Belt region, particularly in Texas and Florida. While this growth has led to rising rent prices in some areas, it has also spurred substantial housing development to meet the increasing demand.
From 2020 to 2023, the Austin metro has seen the highest per capita increase in new housing units. Other Sun Belt metros will follow suit. Despite previous concerns about rising rents, many experts expect 2024 to see a balance as the new housing supply absorbs demand.
3. Policies will continue addressing affordable housing shortages
The shortage of affordable housing has reached a critical level, which will prompt more municipalities across the U.S. to implement new policies. In 2023, more rezoning efforts were undertaken than ever before. This includes the elimination of single-family zoning, subsidizing office-to-residential conversions, allowing accessory dwelling units, and reducing parking requirements. These policy changes aim to boost housing construction and alleviate the affordability crisis. More cities are expected to join the movement in 2024.
4. Renters will face financial strain amid high costs
Despite the evolving rental landscape, financial challenges will persist for renters. Household incomes have remained stagnant, and high rent prices continue to strain affordability. Surveys indicate that fewer renters can pay their bills on time and in full, contributing to an increase in debt and a decline in savings.
With the resumption of student loan payments in 2023, these financial pressures are expected to intensify in the coming year. Property management companies are responding by placing increased focus on tenant screening, particularly in competitive markets where rental demand is high and housing inventory is limited. More individuals are also seeking rooms for rent in private homes to spend 40-50% less compared to traditional housing.
As we navigate the rental housing landscape in 2024, it is crucial to stay informed about these trends. PadSplit is the best exit strategy for underperforming short-term rentals as there becomes a greater need for rooms for rent throughout the U.S. Learn more about becoming a host today at PadSplit.com.
