The Single-Family Rental (SFR) is gaining renewed interest with real estate investors. As Millennials and Gen Zs navigate a volatile housing market, SFR properties in Indiana are attracting families in search of space and privacy without the attachment and financial burdens of homeownership—but in an economy where the price of rent is as expensive as a mortgage, educational marketing to Millennial and Gen Z families is key.
Single Family Rental properties grant tenants time to plan ahead for major financial decisions, provide a clean living environment, and offer the convenience of their locations. SFR homes continue to fulfill the needs of a growing niche.
Single Family Rentals Provide Time to Make Wise Financial Decisions
Both Millennials and Gen Z are financially conservative after witnessing one or more recessions, soaring inflation, high interest rates on student loans, and a global pandemic. For these families, it’s imperative to balance the need for space (especially for those working from home) with affordability. At the same time, there is pressure on both generations to buy their first home amid rising rent and housing prices, leading many to compromise or give into impulse purchases—yet 82% of Millennials who purchased homes have major regrets.
A Single Family Rental gives its tenants time to identify their priorities and make sound decisions in the future vs FOMO purchases they regret. Paired with other benefits, such as a property’s pristine interior and convenient location, the Single Family Rental continues to appeal to Millennials and Gen Z.
Single Family Rentals Offer Better Living Conditions than Fixer-Uppers
The price families paid pre-pandemic for a furnished home might buy a fixer-upper today. While affordable, fixer-uppers have hazards that families with children should know. For example, approximately 29 million US houses have lead paint, and if the home was built prior to 1980, it may have asbestos. Other cheap home frustrations include old and inefficient appliances, poor insulation, and the likelihood of running into unexpected repair expenses.
In contrast, a Single Family Rental with a clean interior and working appliances offers an enticing alternative for Millenial and Gen Z families considering a fixer-upper. A new construction, built-to-rent (BTR) SFR property offers a healthier environment for raising a family in comparison to the 1950s house with hidden damage.
Single Family Rentals in Desirable Locations Offer a Better Quality of Life
Millennials and Gen Z have similar criteria when it comes to a home’s location, but asking prices for properties in these areas tend to price both out of the market. For Millennials, a desirable home is located in proximity to their work, parks, and school districts. For Gen Z, the focus is on the overall neighborhood and how the location complements their social life.
An SFR allows families to live in a location that isn’t accessible otherwise. While families might not qualify for a mortgage in areas that match their demands, they may qualify as renters, enjoying the convenience of living in their dream neighborhood.
Where to Market Single Family Rentals
Millennials and Gen Z are tech-savvy generations, spending considerable time online (3.8 and 4.5 hours per day respectively). To reach these groups, advertise in their social media channels (Facebook, Twitter, Instagram). Follow trends in the real estate world and research challenges for this audience. Use these insights to promote solutions the SFR provides.
If you own a Single Family Rental in another state or don’t have time to commit to advertising and managing the home, hire a property manager. A property management company for SFR properties will ensure your rental homes look and remain attractive to prospective renters.
At WILMOTH Group, we understand how and where to advertise single family rentals to younger generations. We assist with everything from finding suitable tenants to collecting rent, fielding calls, and scheduling maintenance or repairs. If you’ve been waiting to purchase an SFR or BTR property due to the marketing and ongoing work involved, allow us to assist.
Contact WILMOTH Group to discuss your single family rental.