7 Rental Market Predictions for 2022

7 Rental Market Predictions for 2022

As the world gets back to normal, so does the real estate sales and rental markets. Over the past two years, the pandemic did a lot to interrupt the natural growth of the market by not allowing landlords to charge late fees, raise rents, or evict for no-payment of rent in some areas. The market is settling down and here are seven things that landlords can expect to happen in the near future.

1. Rents Will Increase

Economists at realtor dot com predict a 7.1% growth in rents on average nationwide. Some areas are rebounding from lower rents or lower demand during the pandemic. Rent increases were also not allowed in some areas during the pandemic so the market is also correcting for that. Areas that were affected and went down the most during the pandemic may have the most bounce back but not necessarily. Some areas have become more desirable for renters as jobs shifted and more opportunities to work from home came about as well.

2. Potential Buyers Shifted to Renting

As home prices increased across the nation, some potential home buyers were priced out of the sales market and shifted to continuing to rent. Some people moved in with family during the pandemic and are now looking to move out on their own creating more demand for rentals.

3. Buying Could Become More Affordable Than Renting in Some Markets

With the low inventory of homes available to buy, prices increased and the renters who were struggling to get the money for a down payment were priced out. Some potential buyers also didn’t want to get involved in a bidding war or pay cash above appraised value, so they reconsidered buying and will continue to rent increasing the demand in the rental market.

4. Renters Are Looking for Larger Units

With the pandemic, a wave of workers either started their own businesses or worked remotely for their company from home and that has continued for many. Having a separate office or work area has become a feature that more and more renters are looking for.

Contact us today to learn more about how our property management team can help you fill your residential real estate property with high-quality tenants.

5. Some Landlords May Sell

Landlords may take advantage of the increase in their home’s value and decide to sell. Some homeowners are choosing to cash out and sell, which leads to fewer rentals on the market.

Contact us today to learn more about how our property management team can help you fill your residential real estate property with high-quality tenants.

6. Good For Investors

Rising home prices and rising rents are good news for real estate investors. Whether investors choose to sell or rent, they are in a good position either way.

Contact us today to learn more about how our property management team can help you fill your residential real estate property with high-quality tenants.

7. Less Options for Renters

Renters have fewer options as landlords can evict tenants again for non-payment. Renters who struggled to stay afloat during the pandemic will now face higher rents and possibly damaged credit if they pay rent late or get evicted.

Contact us today to learn more about how our property management team can help you fill your residential real estate property with high-quality tenants.

If you’re a current homeowner or looking to get started investing in real estate, give our office a call to see what some good options for you are. If you’re a landlord who self-managed your home during the pandemic and are looking for a professional management company to take over, give Missoula Property Management a call. We manage thousands of homes in Missoula and helped hundreds of landlords get through the pandemic.

Contact us today to learn more about how our property management team can help you fill your residential real estate property with high-quality tenants.

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