Residential Rentals - A Shelter for People
As long as we have people it almost goes without saying that there will be a demand for a place to sleep. I also have a section on vacation rentals.
The questions to ask are “why do people want to sleep there?” as well as “Is there room for all that want to live there? “.
Supply and demand is based on a combination of growing population and employment opportunities within a commuting distance. Within a region, things like the amenities, perceived safety, noise level, and other attributes factor into the relative value of one community over another.
Marin County has some tremendous advantages on all demand factors, other than afford-ability. There is some cap on what people can pay based on employment and salary levels, but the regional employment situation as well as many people using some inherited nest eggs still has pushed prices ever higher.
The same factors that drive the price of homes for sale up drive up rents. This makes owning residential real estate rentals in supply constrained areas more than selling paint, carpet, and amortization of the cost of construction that defines rental property ownership in much of the country.