Market data indicates rental values set to climb on supply crunch
BALTIMORE, MD, May 03, 2022 /24-7PressRelease/ — Treu Property Management, a leading technology-centric, data-driven rental property management firms in Montgomery County MD, believes there is opportunity waiting for investors in the County’s rental market space. Delivering his monthly rental property market outlook online, to a select live-streamed audience, CEO, Allan Meseroll highlighted the underlying reasons for that optimistic outlook.
“With outright homeownership still a challenge for most County residents, there is a growing demand for rental housing. Over the past 30-years, the County has maintained a 2.8-3 person-to-dwelling unit ratio. It’s estimated that residential development is only available for 15% of available County land – and there lies the opportunity.”
Allan explained that, as one of the more active property managers in Montgomery County MD, Team TREU has experienced first-hand the supply-demand crunch for housing:
“With no noticeable increase in new residential development in the near term, it’s likely that there’ll be an even greater push for rental homes. Farsighted investors, who partner with an experienced rental property manager, can capitalize on that trend.”
In his slide presentation, packed with relevant data and graphs, Chief Technology Officer (CTO) Dan Young drew attention to housing affordability, as measured by the latest Montgomery County All-Transactions House Price Index (HPI). Commenting on the opportunity for rental property investors, Dan explained:
“The Index measures average changes in housing prices across the County, based on sales or refinancing’s of single-family homes. Over the last 10-years, the Index has gone from 173.98 (2011) to 227.53 (2021 ), marking a 30.78% increase.”
Between Property Taxes, Home Insurance, PMI Insurance, Closing Costs, HOA costs, Utilities, Maintenance, owning and maintaining a home is a challenge. However, Dan noted that, based on official figures, rental property management firms in Montgomery County MD have reported average 2021 rents as high as $13,798 (3620 Littledale Rd Kensington, MD 20895), and as low as $155 (101 Odenhal Ave Gaithersburg, MD 20877), with a median value of $1,422. This still offers a healthy ROI value proposition for rental real estate investors.
In his closing comments, Allan thanked everyone for their time, and reminded participants that TREU is one of the premier property managers in Montgomery County MD. He encouraged rental property owners and investors to contact him if they had any questions.
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