Recent US Census data tells us that real estate property management is growing between 7% and 8% every year. 140,000 businesses are generating more than $36 billion in revenue. And this growth is likely to continue for a long time. It’s much the same in the Nashville property management scene.
Four factors can be attributed to this growth:
1. The Baby Boomer Effect
People from the Baby Boomer generation are going into retirement now. These are people with more wealth, education, better health, but little time. Many of them are buying second homes or downsizing, as they move from bigger single-family homes to condominiums or townhomes. This is a major driver for increased demand for property management services in Nashville and in other places across the US.
Some of these baby boomers even own properties in cities where they don’t live. It’s just an investment for them. Or they could be living in another city on work, as they haven’t retired already, and are merely nearing retirement. Of course, it managing a property from a remote location is very difficult. So they are opting for Nashville property management. It makes sense.
2. Local Living Movement
Core urban living is in demand for many reasons, like better energy costs, pressure on family schedules, greener living aspirations, and a renewed sense of community. Urban living is often more appealing than the isolation of suburbs. Younger people now want to stay close to the action. They want to live within a walking distance to restaurants, pubs, clubs, and if possible, even the workplace. So this is hiking up the demand for city properties, and in turn for property management services in Nashville.
3. Planned Community and Municipalities
Municipalities across the US have been embracing HOAs or Home Owners Associations and other communities. Many are preferring planned community living over traditional family units. It good for the municipalities too, as they can maintain the same property tax but still reduce the costs. The communities often do trash pickup, landscaping, and code enforcement. Many of these properties of course require the services of property managers. They cannot do it all by themselves.
4. Generation Y Factor
5-bedroom homes don’t represent high-living anymore. It’s often a maintenance nightmare. Generation Y, people born between 1980 and 1999, are buying properties now. It’s bigger demography than the baby boomers. Many of them are making purchase decisions. They are tech-savvy and aware of things happening around them. These people realize the value of professional services. Many of them are naturally turning to property management.