Today we’re talking about what the 2015 rental market looks like for us in Florida, specifically in the Tampa Bay area. At Cavalier Estates, we have seen a couple of things that we think are quite interesting. Let’s start by taking a look at the investors we are working with. They are not investing in the stock market anymore. Instead of buying stocks, these investors are looking for tangible assets such as rental properties. The stock market is a little overplayed right now, and that’s scary to investors. They like the idea of driving by their asset, looking at their investment and knowing there are tenants inside who are taking care of the property. We help a lot of investors with this transition out of the stock market and into the rental property market.
An obvious example is what you see on the news. Hedge funds are gobbling up all the real estate they can get their hands on. Blackstone is the most visible one, and they have bought over a thousand homes in the state of Florida alone. They are looking at other states that have hot rental markets as well. When you have those kinds of heavy hitter investors putting billions of dollars into the market, you know they understand that the real estate market is safer and better as an investment than other traditional markets.
The local market has prices ticking up a little. This is good news if you want to sell property. When the houses sell, that’s great. But if there isn’t enough inventory left over, then the guy who just sold his house may not have another one available to buy. Some of these sellers are transitioning into renters, which is not a bad deal because they might be able to live in a nicer home than they could afford if they were buying property.
We are also seeing that there’s a paradigm shift with the younger generations. People who are 40 and younger are not quite as enamored with the American dream of owning a home. They have seen friends and family spend years and years paying off a home only to lose those homes to foreclosure. Home ownership is no longer the American dream. Renting has become a better scenario for a lot of people.
There is a steady demand for rentals in 2015. A lot of people are displaced and a lot of people are no longer interested in buying, so rentals will stay strong. It’s a great time to invest in a rental property, so contact us at Cavalier Estates and we’d be happy to help you out.