Investors who can provide the housing that satisfies the needs of the single tenant will stand to profit. We all know that the number of persons living alone has increased. Figures from the census bureau show that households that contain only one person have increased 90% since 1970. There are now more than 20 million people who live alone, more than twice the number of twenty years ago. This trend is expected to continue.
The One Person Household
Population experts say the trend is caused by a larger number of widows and divorced people and by the decision of more young people to wait longer before marrying.
Although the census bureau’s data is not broken down by local areas, demographers say that inner-city housing is hardest hit by demand for the single tenant.
Investments In Singles
There are different kinds of residential rental properties that can help meet the growing demand for the housing-for-one:
• Developments which consist exclusively of mobile homes, modular homes, and pre-fabricated homes. The less expensive construction costs will attract many one-person, one-income households.
• Apartment buildings specifically designed with one-person units. Generally speaking, these buildings offer smaller units, more compact units, and more units per floor.
• Townhomes, condominium apartments, and homes with only three or four rooms are investments that attract those one-person households for whom money is not a major concern. The householder may prefer to buy rather than rent or may prefer a more private, secluded environment.
• Accessory apartments and echo housing units are forms of modifications or conversions to an existing home, usually a garage. These offer owner-investors a rental income and a higher market value on the basic property.
Many experts say that rentals offer young people maximum flexibility and offer older people minimum upkeep chores. Thus, one-person households will tend to be renters rather than owners.