Is Single Family Real Estate Still A Good Investment In 2019? Most Analysts Say Yes!

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Are you planning on buying single-family real estate in Portland or elsewhere in the United States during 2019? If so, you’re making a smart choice!

Most analysts agree that single-family real estate still is one of the best investments in 2019 especially after the Millennium Trust survey which showed that roughly 73% of high net worth investors in the United States favored investing in single family homes vs. multifamily or other investments?

About the Millennium Trust Survey

Most of us in the property management field already know that, despite occasional risks and business challenges, single-family rentals are good investments. But with the market uncertainties that are now appearing, are these still the right assets to have in your portfolio? The sentiment of high-net-worth investors suggests a resounding “yes.” According to a recent survey by financial services company Millennium Trust, a staggering 90% of people are inclined to invest in alternative assets of which real estate is the top choice.

Single-family rental properties are at the top of real estate and of interest to a whopping 73% of high-net-worth real estate investors, as stated in the Millennium trust study. Some trends believed to be causing the interest (and continued growth) include downsizing baby boomers, as well as millennials choosing to rent longer so they can keep their options open.

What does the future hold? Some experts believe, in the long term, 13 million additional homes will hit the market by the year 2030, adding to already existing 16 million assets. And in a recent US News and World Report article, Quinn Palomino, co-founder, and principal at Virtua Partners in San Diego, believes that the near future is bright.

In the article, Palomino states “demand is high, and supply is still constrained, particularly for entry-level housing. We anticipate rent increases will outpace the overall commercial real estate market, landing in the 5 to 7 percent range.” She also believes that single-family rentals will beat the stock market in 2019 due to low rates and low unemployment.

More Reasons to Invest in Single Family Real Estate

Are you still “on the fence” about investing in single-family real estate? If so, here are more reasons to consider investing in single-family rentals vs. multifamily.

Higher Rent Payments – When you rent a single-family home it’s possible to rent that property for more than what you could rent one unit in a multifamily property.

Faster Appreciation – Another huge benefit that comes from investing in single-family properties is appreciation because when home values in the area begin to increase, the value of your rental property will increase as well.

Utility Bills – With a single-family home you can expect your tenants to pay all of the utility bills each month compared to a unit in a multifamily property where the landlord is often responsible for paying all of the bills.

Better Quality Tenants – Historically, single-family homes often attract better quality tenants because these types of tenants usually want to stay in one spot and not relocate to another rental property once their leases expire.

Yard Space – Most single-family homes with either have a nice sized front yard or front and back yard. This will attract more tenants by default, especially if they have children because those renters want the best home with plenty of yard space for their kids to grow up.

Less Maintenance – Since the average single-family rental only has two toilets, one water heater, and one HVAC, this means less maintenance for you and fewer headaches compared to multifamily properties which have multiple appliances.

Contact Property Management Systems

Are you tired of managing your single-family rental property yourself? Contact Property Management Systems today by calling us at (503) 515-3170 or click here to connect with us online.

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