We are very pleased to welcome a new member to our team, Bryan Rogers. Bryan has joined our Resident Services Team and will be assisting new prospects and current residents with their needs. Prior to joining our team, Bryan worked in the retail and healthcare industries.
The formation of new households plays a major role in the housing market, and account for a large percentage of new rents. Recent statistics show a positive trend in this area, some of which has fueled the national housing demand.
Statistics estimate 1.195 million new households were formed in 2014, or a 1.0% growth rate. The previous years showed a much weaker trend (.8% in 2013, .5% in 2012, and .3% in 2011).
Young adults aka Millennials (ages 20-34) are the leaders in new household formations, generating 65% of all new households. Indicators point to an improving job market as the main impetuous for this movement.
With Millennials de-coupling, leaving their parentsâ€™ home or graduating from college, the demands for housing have also increased. However, this looks vastly different than in the past. As we have written about in prior issues, the â€œnew renterâ€ is much more professional and demanding then their legacy counterparts. Statistics often offer a precursory view of trends on the horizon. Below are some interesting statistics on how the millennial generation impacted the rental housing, relevant to 2003:
- There are 63.9 million Millennials.
- 20.9% of this age group are homeowners versus 27.9% in 2003.
- The number of Millenni-als living with parents has grown 2%.
- 3.5% growth in renters 25-29 years old doubling up with other renters.
- People aged 20-24 have a 24% household formation rate, less than half of all over 20 years old.
- Single family home own-ership has dropped almost 10% among 30-34 year olds.
- There has been a 3.3% increase in the number of Millennial households renting.
- The share of Millennials who were householders or spouses of householders decreased 6.1%.
Locally it is difficult to obtain specific data; however, based on market observations and statistics we are still in recession recovery mode as for our employment picture. There are a number of positive components to our economy and we are hopeful that some of these will continue for the benefit of all.
In a recent Greensboro News & Record article the impact of large institutional investors on the Triad market was discussed. While there was no â€œnewâ€ information in the article, there were many validations of trends we have kept our clients apprised of over the past few years (reference archived copies of The Birch Quarterly on our website).
The influx of institutional investors in our market has fueled some appreciation in segments of our market and, in fact, RealtyTrac statistics show the median home price in our region increased 14% to $114,000, related to $100,000 in February 2014. RealtyTrac also identified that 8% of all home sales in the Greensboro-High Point metro area were bought by investors, which is twice the national average.
One of the components that has driven the acquisition of investment properties in our market is the relatively low price point of our average home. With much of our housing stock being priced at a level that is conducive for rental units, an investor has been able to acquire an asset, rent it out, and achieve a return that fits within their yield metrics. Based on traditional individual investor investment property metrics, many of the purchased assets do not meet returns that individuals are looking for. Some of the transactions we have analyzed have had returns 10-30% less than those that our clients tell us they are looking for.
Is this level of buying by institutional investors sustainable? We simply do not know at this time, but we can take notice of how it has changed our market. One of the biggest changes to our market is the number of very high quality rental options for prospective renters. Based on reported numbers, the average renovation after acquisition is $12,000 per home; meaning that these homes will present a â€œlike newâ€ impression to prospects.
Like it, or not, this is the new reality in our market and we can only adjust to the changing market. As mentioned earlier, there is a lot of additional information available on our website detailing the changing market trends.
Toll Free Direct Number: Our clients can now simply dial a toll free number 1-844-5CLIENT (525-4368) to be routed to our entire Client Services Team. If someone is available your call will be answered, if you get our client voicemail please leave a detailed message so we may return your call as soon as possible. Do keep in mind that our Client Services Team is always on the go evaluating the needs of
Owner Web Login: Our industry leading owner web login on our website is our clientsâ€™ link to their information. Here is a sample of the information that is available by logging into your secure account on our website:
- Account Balance
- Open Payables
- Open Receivables (has my tenant paid)
- Service Issues
- Posted Invoices- retrieve and store copies of all invoices posted to yur account
Operating Schedule: Our regular operating hours are Monday to Thursday 8:30am-5:00pm and Fridays from 8:30am- 4:00pm. Our next scheduled office closings will be Monday May 25 for Memorial Day, followed by Friday July 3, 2015 for Independence Day.
Our mission is to offer personalized and professional service to both our clients and customers by building strong relationships, utilizing the latest technology, implementing effective marketing strategies, following consistent systems all with honesty and integrity throughout every facet of our business.