6 Things to Do Between Buying Properties

2023 is likely to bring a real estate market shakeup. To get a grip on what's to come, we're looking back at market statistics from the last year. There's no guarantee that things will continue along the same path—the market is always changing and always exists in a particular context. Still, these statistics are telling, and their context sets the stage for what we may see in the coming year.

In 2022, 42% of all rental households lived in single-family rentals. Rental demand is likely to remain high, even if it tempers a bit with the cooling homebuying market. Buyers will continue to hold off, opting to rent while lending standards are tight and interest rates are high. 

In 2022, 45% of renters were paying rent at or above 30% of their gross household income. Affordability is an increasing area of concern among renters and homebuyers alike, particularly as we move into a season of recession. As a rule of thumb, one’s debt-to-income ratio should not exceed 30%. For many rental residents, their rent alone blows that ratio. For real estate investors, this demonstrates the value of competitive pricing.

Premium properties should come with a premium price – that’s not in question. However, your residents should always feel value in their rental that goes beyond the roof over their heads. It’s the quality of the property and the services provided that see lease renewals: not necessarily the price tag.

Stay tuned for more 2022 statistics and what they mean for investors in 2023.

Between the uncertainty of the housing market and economic challenges at large, investors must be more diligent than ever in choosing the right investments and the best strategies for long-term success.