What can rental property owners and real estate investors expect to happen in the market in 2022? The market is always changing. In 2020 and 2021, home sales dropped to the lowest number since the 2007 housing crash, then shot up rapidly. What will this mean for landlords of rental properties?
• In 2021, construction of new homes decreased, making the housing shortage even worse than it had been. Many people relied on renting. While construction should increase in 2022, the supply chain may still delay new housing and increase renters.
• The health of the economy has a direct effect on the real estate market. Long-term leases will suffer the least from economic downturns.
• Keep an eye on new government policies, such as tax credits, subsidies, and deductions. These may give tenants an incentive to buy instead of renting.
• With more people working from home, renters and buyers will be looking for potential workspaces in their living space. Access to transportation or efficient traffic routes may be much less important.
• It’s a seller’s market, and that trend may well continue through 2022. This could be the time for an investor to let go of some property that hasn’t been a good investment.
A wise rental owner will keep an eye on the trends, including where people are buying homes, why they are buying, and how much they’re paying. Now, as never before, excellent management will attract and keep long-term renters.
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