Market Opportunities

Every market cycle presents opportunities for real estate investors.  And today is no exception.  Across the country the residential rental market is hot! 

Nationally, rental and occupancy rates are on the rise.  At the June 7 REIT conference in New York, investors were focused on multi-family rentals for the first time since the recession hit.  (http://blogs.wsj.com/developments/2011/06/07/at-reit-confab-buzz-is-multifamily/)

Why are more people choosing to rent? Many, as you would expect, are renting because they are victims of foreclosure or are unable to meet stricter mortgage requirements.  But the race to rent is affecting middle and even high-end rentals as well. In Manhattan, five figure rentals are in demand, according to a June 7 piece in the New York Times. Even among the wealthiest, uncertainty in the current market, is causing people to decide to rent instead of buy.

            The Northern Virginia rental market - with high occupancy rates, high rents and above average rental rate increases - is one of the hottest in the nation and offers exceptional opportunities to real estate investors. 

 The employment climate in NV is well above the national average, and is projected to grow for the foreseeable future.  Government agencies and high tech firms provide well-paying jobs for highly educated professionals, many of whom come to the area for short-term consulting jobs, and seek high-end rentals.

The demand for rentals among middle class professionals is expected to continue as the homeownership rate continues to decrease, and as rent ratios hover around 18.3.  At the same time the lack of available land and financing for development is keeping stock low, making it harder and harder to find homes or apartments to rent.  (http://activerain.com/blogsview/2105535/northern-viginia-rental-market-going-going-gone-).

Today a large supply of foreclosed and undervalued properties in Northern Virginia offers investors a great opportunity to get into the rental market.  Next we’ll look at the biggest obstacles facing new real estate investors.  The causes might surprise you.