PORTLAND, Ore. – As a landlord who owns Portland Oregon Rental Property you may be focused on marketing to Millennials or Generation Y but what about Baby Boomers? Yes, Baby Boomers. Thanks to a recent study by Freddie Mac we know that 5 million Baby Boomers are expected to be renters by the year 2020.
Baby Boomers Are Choosing To Rent, Not Buy
What’s shocking about the Freddie Mac data is that it’s a clear sign that more Baby Boomers are choosing to rent homes in Portland Oregon and elsewhere across the United States, instead of buying homes.
The Freddie Mac study also showed that by 2020 there will be roughly 6 million homeowners as well so those times will certainly be interesting considering that most Baby Boomers cite affordability as a major factor in where they ultimately settle so one can only hope that construction of new rental properties in Portland Oregon and elsewhere across the United States will keep up with demand for rentals or we could see even higher rent increases in Portland, and nationwide by 2020, than what we’ve seen in the last two years.
What Else Influences Baby Boomers?
Digging deeper into the Baby Boomer data we know that besides affordability most Baby Boomers have other things they are looking for in a rental property including amenities for their retirement, a walkable community and most important of all, they want to live in a rental property where the property maintenance is taken care of by someone else.
In 2016 one thing is clear about Baby Boomers who are searching for rental properties in Portland Oregon and other cities nationwide, this Generation isn’t like the elders of the past. Today’s older generation is purposely choosing to rent instead of own homes and they want to be closer to downtown areas or near the action.
Besides wanting to live closer to Downtown Portland Oregon in town homes and condos, or similar cities across the United States, some of the other reasons why Baby Boomers are renting include:
- They are ready to downsize and no longer feel the need to own homes since their children are grown and many Baby Boomers have Grandchildren who are grown as well.
- Renting offers more flexibility to Baby Boomers and other generations because a renter can essentially “try out” a city before deciding to own a home and settle in a city that they might not love.
- Most Baby Boomers cite the affordability of renting vs. buying a home as one of their primary reasons for renting especially because they want to preserve the money that they have for retirement without having to re-enter the workforce.
- Another common reason why some Baby Boomers would rather rent instead of buy homes is because they want just paid off their mortgages after selling homes and they want to use that capital for investing in other investments or retirement accounts.
- Last of all, but most important, another common reason why more Baby Boomers are renting instead of owning homes in 2016 is because they want to avoid the hassle of selling those homes later on and this is understandable especially considering the stress that comes with selling a home.
Baby Boomers Are Driving Rental Demand
There’s no denying that today’s Portland Oregon rental market is competitive, to say the least, and one of the biggest factors that have been driving up demand for rental properties across the United States is Baby Boomers because many from the Baby Boomer generation have recently sold their homes and are entering the rental market for the first time in decades.
Today’s Baby Boomer isn’t just searching for a Portland Oregon condo, or town home, they are also searching for apartments as well since many of the apartments which have been built within the last two years have amenity packages and high-quality finishes which you would find in some of the best condos around the Portland Oregon area.
A recent survey from AARP showed that the home ownership rate among Baby Boomers fell by 5% from 2005 to 2013 and that’s only expected to continue growing as most people from the Boomer Generation want to avoid having a mortgage and other hassles that come with home ownership.
Even though the rental market in Portland can be a stretch for some Millennials or Generation Y renters, most Baby Boomers have cited the convenience of renting which includes not having to pay for repairs, grass cutting, property taxes, or the other responsibilities of home ownership as their biggest reasons for wanting to rent, versus buy homes even though Portland like some U.S. Cities has seen sharp rent increases in recent years.
Savvy Landlords Are Staying Ahead Of Demand
With 5 Million Baby Boomers expected to enter the rental market by 2020 savvy landlords are working hard to keep up with that demand including investing in rental properties that cater to individuals who are age 55 or older while other landlords are changing their target rental markets and instead of focusing on renting to younger generations, they are now shifting their focus toward renting to Baby Boomers since they feel that being in front of a good opportunity is also good business.
If you’re considering renting your Portland Oregon rental property to Baby Boomers some of the things that you should do to market your rental to this generation of renters include:
- Market The Convenience – Regardless if your rental is a single family home, condo or town home in the Portland Oregon area, you should market the convenience of your rental property, especially if you cover all of the maintenance.
- Highlight The Area – Since most people from the Baby Boomer generation are retired you should work hard to highlight the area where your rental property is located and talk about things like walkability and public transportation since some Baby Boomers are unable to drive but still want to remain independent as they grow older.
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