How will 2019 fare when it comes to property management? Let’s find out today.
Here’s our forecast for the 2019 real estate market in regard to property management:
When we talk property management, we’re mostly referring to apartments. We’ve seen about five years of increasing apartment inventory in the San Antonio market. A lot of these apartments are being absorbed, as well. We’ve seen a vacancy rate of 7.6%.
Apartment prices have increased by 3.6%, which is great. The higher the increase in prices, the more we get when we rent out residential houses. And we’re seeing a few things happening when it comes to residential houses: The number of homes rented has increased by 5% and leasing rates have increased by 1.4%. This may seem low, but as absorption rates and vacancies decrease, we should see prices increase to around 5%.
These changes are spurred on by wages, which have increased by 3.2%. That’s the highest increase in a decade. On top of this, interest rates are not expected to increase until June. **These are two great reasons to start thinking about investing if you haven’t already.** If you plan on getting a loan later, it’s going to be a lot more expensive. The average home price in our area has increased by 8%, so investors can look forward to increased rental amounts.
The higher the increase in prices, the more we get when we rent out residential houses.
If you have any questions or need more information about our predictions, feel free to reach out to us. We look forward to hearing from you soon.