Whether you defaulted into being a landlord, or you are an investment guru, you know that the uncertainty of the real estate market can cause a lot of stress, especially with talks of deflation, widespread recession and falling home prices. As most economists will tell you, consumer spending drives the economy. Whether you believe the savings of the baby boomers caused the economy to stumble, or you believe it came from the “housing bubble” over extension of credit and investments of banks on sub-prime loans, I think we can all agree that the looming retirement age of our baby boomers, and loss of spending by the baby boomers in the coming decade will pay it’s toll on our economy.
BUT FEAR NOT INVESTORS !! While your property values will most likely to continue to deflate, you still have options. This downturn in the economy will most undoubtedly result in continued changes to banking policies, and make it more difficult to get financing for property. Coupled with the fact that the media demographic age of a renter is 26 years of age, that demographic will continue to mature, and reach this age. This will result in more renters in the market. Which means you will survive, and possibly thrive!
Rental housing spending peaks right now at median age of 26 (Dent, 2007). With that said, Dent says “(Rentals) will hold up best, as more young households will be forced to rent first, and that rental cycle is on the rise demographically into 2017”.
So, those of you stuck, unable to sell, fear not… Renting is still a great option, and with our rental services, you will be prepared weather the economic storm…
Happy Renting!
Sam Thompson
RPM Midwest
880 Alexandria Pike
Ft Thomas, Ky 41075
2720 Airport Dr
Columbus Oh 43219
Source : Harry S. Dent (2009) “The Great Depression Ahead”
Tags: property management rental services, property rental services, real property management, Rental Services