According to a recent report released by Forbes, the housing market is continuing to grow while the rental market plateaus. In light of this, many rental property managers are offering incentives to lure in potential tenants.
The Forbes report notes that the ideal housing vacancy rate is approximately 1.5 percent. During the height of the housing crisis, the rate was recorded at approximately 3 percent, and it has now decreased to around 2 percent. The simple explanation for this, according to the source, is that fewer homes are being built while demand grows.
On the opposite level, apartment vacancy rates are still dropping, but not the way they were during the boom of 2010. In contrast to the housing market, thousands of rental units are being constructed, and while the demand is still high, its growth is slowing markedly.
Therefore, in order to compete with the combined force of the slowing demand for rental units and the onslaught of new units under construction, property managers are resorting to innovative measures to bring in more rental applications, according to NASDAQ. The source points out that one Rockville Center, New York, property manager not only removed his rule disallowing pets from his properties, but went so far as to build a dog walk near his complex in order to provide pet-owning tenants with a place to walk their dogs.