Industry Analysis & Industry Trends
Operators in the Apartment Rental industry are set to reach new revenue highs in 2016. Even though the industry had some difficulty prior to the past five years, the subprime mortgage crisis pushed some individuals out of homeownership and into renting. Increasing demand, combined with a shortage of available rental units due to industry pullback during the economic downturn, decreased rental vacancy rates and enabled landlords to raise rents. As the economy improves over the next five years, the unemployment rate will drop and income levels will rise, enabling some people to afford renting at higher rates. In addition, an ever-increasing number of young adults, the age group most likely to rent, will enter the labor force... purchase to read more
Industry Report - Starting a New Business Chapter
Overall barriers to entry for this industry are medium. It is extremely difficult to enter the market on a large scale due to capital and financing costs. However, small operators can come in at a relatively low cost. Locations and regulation are also important factors to consider before entering the market.
The Apartment Rental industry is highly capital intensive, especially for larger players and property owners must raise money to purchase property, develop lend and run operations. Access to capital markets is often restricted based on the size, diversification and track record of the real estate owner... purchase to read more