There has been a shift in the housing market where a demand for rental living is sweeping the nation into new territories and properties. Pushing the change is in today’s home buyers and renters pool where younger demographics make up the majority and come with different needs and interests of past generations. This influence has pushed the property development industry to evolve towards establishing projects in new locations with different property amenities and accommodations.
Listening to the younger generations of millennials, gen x and y’ers; a significant change in the interest and capability for obtaining home ownership has pushed many into rentals. Factors such as high student debts, low inventories of single-family homes and an overall increase in pursuing careers, travel and other interests over home ownership is causing change throughout the marketplace.
Seen the most in states growing their populous and economy including Texas, Arizona and Florida; younger renters are migrating to the areas that offer large city opportunities with the affordability of closely located suburbs. Subsequently, property developers have had to adapt to serve the needs of this growing group of decision-makers that has recently become the majority.
One city gaining momentum from this trend is Houston, TX and its surrounding areas. Recently on the rise after a long downspin in its rental industry, this market is expanding developments in commercial and residential constructions. The city of Houston is now expected to sustain growth that will position it as a national leader in the next five years.
Leading Texas property developer Marcus Hiles of Western Rim Properties, has been expanding the rental industry in the state for over three decades and has experienced the fluctuations in demand throughout the years.
Focused on addressing the needs of the newest demographics of renters, WRP’s properties take into account their biggest selling point: accommodations that make daily lifestyles easier to maintain.
A change from past generations where rental living fell in low income, city areas and offered the baseline in accommodations; a new upscale market has been established. Diverting from the roots of the rental industry, this trend of upscale rental living is pushing projects forward and into middle to upper-class communities on the rise.
With over 30,000 property units developed, the CEO and Founder of Western Rim has created these affordable, high-end properties across the state of Texas and understands what renters are after.
Separating his properties from competitors; Marcus shares, “Our focus is in transcending the boundaries of what rental living has been historically. Through offering a new age of properties that focus on conveniently located, accessible luxury living; we have been able to expand our market opportunities and overall presence throughout Texas.”
Pinpointing the interests of today’s majority renters in areas of modern comforts such as energy efficiency, top of the line appliances and finishes; the demand is also in property and community features. No longer just brick and concrete complexes; new rental constructions focus on creating an appeal through polished designs, apartment views, recreational parks, pool and clubhouse areas. Renters have even begun to expect the accommodations of residential homes with many new projects adding on features such as garages, oversized balconies, jacuzzi tubs and central air units.
Combined with developers looking for untapped areas with growth potential, the new wishlist of today’s renters has helped establish thriving communities outside of the city. This industry change has also given middle class professionals and families who aren’t looking or able to buy, improved housing options.
As the attitude towards rental living itself continues to evolve, more generations will move away from the importance of home ownership seen in the baby boomers era. Coupled with the new trend in luxury rental living, the displaced group of would be home buyers will soon favor the expanding rental market that is breaking down boundaries with each new generation.