Since it is the end of the year, it’s time to look at what the real estate market did in 2018, and trends for 2019. While County officials take a hard look and impose more regulations on vacation rentals, one real estate investment stands out in the coming year: Long-term rentals.
Single-family rentals — either detached homes or condominiums — are in high demand to the Urban Institute. Maui is no different, with appropriately priced rentals being filled rapidly. But not only that, more people than ever are choosing to rent rather than own. Single-family rentals have gone up 30% within the last three years.
The rise of rentals
After the housing bubble collapsed in 2008, followed by a deep recession, many lost faith in the American dream of buying a home, especially those that over speculated and lost their investment. Even though the housing market fallout has finally receded, desire to own a home is not as strong as before the recession, especially among younger buyers.
Millennials are the largest group of renters. On Maui, stagnant incomes and tighter lending rules prevent many of these potential younger buyers from committing to a 30 year mortgage. However, historically low unemployment makes this same group potentially excellent long-term tenants.
For an investment property owner strong rents and a large pool of tenants create a good opportunity.
Market report
The most recent real estate market report is through the end of November 2018, though we don’t expect a huge change in December.
November 2017 – November 2018
If you would like help listing and managing your investment property as a long-term rental, give us a call at Destination Maui Realty. We’d be happy to help.
Hauʻoli makahiki hou!