For the second straight month, national homebuilder confidence fell during the month of May. According to the National Association of Home Builders (NAHB) and Wells Fargo, confidence slipped 2 points to 44. This was unexpected, as a Bloomberg survey earlier in the month had revealed an expected increase in confidence to 47.
What does this say to us about the rental market? According to the report, anything below 50 means survey respondents consider homebuilding conditions to be poor. When consumers feel it’s poor, they are a lot less likely to build. This potentially signals either that rental demand will stay the same or increase as consumers opt to stay put or gravitate toward renting.
What it means for you as a property owner is that it’s a good opportunity to ensure your marketing is in working order and effectively promoting your property to prospective renters. In the event prospective tenants, who were faced with the opportunity to build a home, are now not doing so for whatever reason, you want to ensure they are fully aware of your property as a viable alternative. You also want to ensure your current tenants and happy and well taken care of. The process of losing a tenant and having to source a new one is a lot more expensive and easy than some of the simple and effective methods that can be employed to ensure your current tenants stay put.
If you’re looking for some ideas on how to achieve this, check out some of our other blogs at www.classamanagement.com/blog.