The State of the Property Management Industry

3 Rental Market Trends to Watch from Buildium’s 5th Annual Report

Introduction

Today's Property managers are at the center of the collision between rising rental demand, declining profits, changing regulations, and the nationwide shortage of affordable homes.
Catch a glimpse of the rental market’s future in 2020—on a national level, as well as in 50 local markets across the country—in the 5th annual State of the Property Management Industry Report.
Who are the 3,676 people who took our survey?
Property managers
renters
rental property owners
association board members
metro areas
Here’s a first look at 3 property management industry trends we’re watching. Discover more data-driven insights inside the 193-page report.
TREND #1

Property Managers Fight to Stay Profitable

A strong seller’s market has stunted property managers’ business growth in recent years. With owners enticed to offload their rentals, many property managers are fighting to maintain their profit margins and client base.
TREND #2

Investor Clients Outnumber Accidental Landlords

As Accidental Landlords exit the rental market, Intentional Investors now make up more than half of property managers’ client base. Plus, faltering home price growth is piquing the interest of a new generation of real estate investors.
TREND #3

The “Typical Renter” is Evolving Fast

Renting is no longer a temporary rite of passage—it’s a lifestyle choice, and a vital alternative to homeownership for Americans who aren’t in a position to buy a home.
1 in 2

What is the primary reason that residents rent?

Nearly 1 in 2 renters would prefer to own their home, but aren’t in a position to buy right now.

38.6%

I'd prefer to own my home, but I'm not in a position to buy a place right now

22.8%

Renting is more affordable than buying in the area where I like to live

15.8%

My current rental meets my needs for now, and I don't want to deal with the hassle of moving

47.6%

I'd prefer to own my home, but I'm not in a position to buy a place right now

20.6%

Renting is more affordable than buying in the area where I like to live

11.1%

My current rental meets my needs for now, and I don't want to deal with the hassle of moving

46.5%

I'd prefer to own my home, but I'm not in a position to buy a place right now

15.2%

Renting is more affordable than buying in the area where I like to live

12.2%

My current rental meets my needs for now, and I don't want to deal with the hassle of moving

37.0%

I'd prefer to own my home, but I'm not in a position to buy a place right now

16.7%

Renting is more affordable than buying in the area where I like to live

14.5%

My current rental meets my needs for now, and I don't want to deal with the hassle of moving

Which generation do renters fall into?

A full third of renters today are over the age of 40; and Baby Boomers are among the fastest-growing U.S. renter demographics.

51.2%
20%
5.9%
11.8%
1.2%
Generation Z
Born in 1997 or later
Millennials
Born between 1981 and 1996
Generation X
Born between 1965 and 1980
Baby Boomers
Born between 1946 to 1964
Silent Generation
Born in 1945 or earlier
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