The Rise of Renters

Housing is on my mind, and chances are, it is for you too. You're either considering your home’s value in this seller’s market, watching your mortgage pre-qualification expire as rates rise, or looking for an apartment at prices 30% higher less than a year ago. For me, it’s the latter situation. I’m looking to rent in one of the hottest cities in the country, and rent for a one-bedroom apartment is steeper than ever.

Supply and demand
Why are we seeing a squeeze in inventory? For starters, homebuilding hasn’t been able to keep up with demand. Moreover, restrictive zoning policy has made it harder to add an ADU (attached dwelling unit) to existing homes. Investors are also buying up homes at a record pace, using them as rentals or Airbnbs. Lastly, more and more banks are becoming landlords at the same time as many millennials are settling down.

On the bright side, wherever there is a pain point, there is an opportunity, and many entrepreneurs are pitching their solutions and finding their customers. 

Up&Up is another start-up that plays on the adage that rent is throwing away your money. The company will rent you a property, and your dollars will accrue towards a down payment to buy. It’s an attractive premise backed by top-name investors. Too bad the offering is only in St. Louis, Atlanta, and Indianapolis (for now).

For people searching for the amenities of a mansion without the staff payrolls and property taxes, there is Alfred. The start-up offers renters a personal-assistant-esque service, coordinating laundry, cleaners, and even a social life, by curating events with other residents.

Stay tuned for the rental investment side of real estate tech.