The number of people who apply for new mortgages continues to decrease. The result is that demand for 2 bedroom houses for rent also continues to increase. So much so, in fact, that the demand is far greater than the supply. The market, therefore, is incredibly good for those who own second homes and are happy to rent them out.
Positive Outlook for Landlords:
On average, around 30% of people’s disposable income go towards their housing costs. While this sounds like a lot, rising wages mean that people are able to handle this cost. In addition, there is Section 8 housing assistance available for those on lower income. What this means is that, as a landlord, you have an opportunity to earn a very nice passive income simply by owning property.
There have also been a number of studies and reports on the state of the housing market. These showed that:
1. There has been a 3.75% increase in prices of 2 bedroom houses for rent.
2. Vacancy rates are at an all time low.
3. Rents continue to rise.
There have also been a number of studies that have clearly demonstrated why people would prefer to find 2 bedroom houses for rent, rather than buying a home. Some of those reasons are:
1. Rents are affordable and re often lower than a monthly mortgage payment would be.
2. By renting properties, people don’t have the responsibility of maintaining it.
3. It is easier to relocate for jobs or new relationships when you rent than when you own.
Another report has looked into the future of the housing market, and it seems that 2 bedroom houses for rent will continue to be very popular for a long time still. A study by the Bipartisan Policy Center demonstrated that:
1. Household formations are changing, leading to an increase in demand for rentals.
2. Fewer people get married and there is an increase in both seniors and singles looking for homes for rent.
3. Echo Boomers have higher levels of debt, making it harder for them to buy a home.
One of the greatest challenges people face is housing affordability. This is true regardless of whether they are lookin for 2 bedroom houses for rent, or hope to purchase one. At present, it seems that spending 30% of a household’s income on housing costs is classed as “affordable”. This percentage should include the mortgage or rent, and also the utilities and other costs.
The state of the housing market today shows that rental prices are rising, thankfully in line with inflation. As a result, there are fewer and fewer vacancies, and there is now a very limited supply of rental housing. This could lead to a greater increase in rental prices, but it seems that landlords are aware of the fact that people simply would not be able to afford this. Overall, the market is very good for those who own properties and are happy to rent them out to others.