The California real estate market changes frequently. Each year comes new challenges, new policies, and new ways to invest in California real estate. This year is no different, especially when it comes to the rental market.
Landlords will see a decrease in renting. There is more help for those looking for housing. There are new areas emerging as the ideal place to move. Plus there are many new technological advancements that are changing the way the real estate market runs.
Below are some of the ways that the rental market will change in the year ahead.
The price of rent has been steadily increasing in the last few years. More and more renters are finding themselves unable to pay these high prices without finding an additional renter or applying for assistance.
With this trend, more renters are looking to buy homes instead. As more people turn towards home ownership, the demand for rentals is dropping.
As there is less demand for rentals, landlords need to be vigilant in finding new renters and keeping the ones that they have. Advertising any vacancies as soon as an apartment or house is available, is a must. Spending more money on advertising that has provided tenets in the past is going to help keep tenants in all properties.
Real estate pros are seeing a shift in the demands of the public for housing in suburbs and urban areas. There are more baby boomers that are looking to downsize from their suburban homes into smaller houses or apartments in urban neighborhoods. Many of this generation does not want to start an investment in a new home and they are deciding to rent, instead.
Similarly, many Millenials and Gen Z are moving away from renting. As rent prices soar, they are unable to continue paying these high prices. Buying a house is a cheaper option for many of this younger generation that are just starting to get on their feet.
There are always cities that are sought after for those that are looking to move. People are moving to these areas and looking to rent and buy properties. Any investor that wants to expand their inventory should look toward these booming cities.
An aspect of the market that is less about the location and more about need is housing for seniors. More seniors are needing housing that does not charge exuberant prices. Investors that cater to this need can find themselves with many possible tenets no matter where their location is.
Technology is quickly changing how people communicate and solve problems. Some landlords are trying to use these advancements to make it better for their tenants when they have problems with a property.
Using artificial intelligence software could help expedite any complaints or reports of a problem. The AI system could record all reports and send automated messages back to tenants. If the problem is not solved by a simple answer it could then notify the landlord.
It is also possible to use technology, like a drone, to provide a new perspectives on a property. Great pictures of the landscaping and the roof can be taken from a drone. Real estate pros have also started to use them to provide a virtual walk-through for those unable to view the house in person.
The new year is bringing many changes to California real estate. Sellers, buyers, and real estate agents will want to learn more about technology that is available, look towards cities with housing available, and pay attention to what assistance programs are available. As more people try to buy California houses the rental market may find some choppier waters to navigate.