#rental sharing

[fernandezangeline-blog]

How to develop a successful sharing economy? Need assistance?, visit www.rentallscript.com

[johnkobierowski-blog-blog]

Who Wants Your Own Place? It's Cool to Share.

Phoenix and for that matter, most of the southwest has been a population draw because of the lower costs of living. It's no surprise that the primary reason for the lower cost of living has been cheaper, plentiful housing alternatives. For as long as I can remember Phoenix has ranked as an affordable city as compared to places like San Diego, Denver, Seattle, etc. The cost of housing cost in Metro-Phoenix was generally understood to be about 30% of household income. 

Some cities like San Diego have housing costs that eat up upwards of 60% of household income. With a limited number of new units being built, huge constraints to growth and steady population growth, owners have enjoyed strong occupancy and increasing rents.

Having roommates and doubling up to share housing costs in these cities is normal. 

For Phoenix and the southwest, it's a newer phenomenon. People are doubling up, families are sharing housing out of necessity. The trend includes young adults who move back in with their parents (or never leave), college students who are forced to commute to the local university rather than attend an out of state school or live on campus to friends and families who take in other friends and families when their homes are foreclosed. 

To go one step further, my dentist now offices with three other dentists, and my barber just agreed to combine shops with guy down the street. It seems like doubling up is the new cool thing to do.

In the multifamily circles, I've heard this described as "Shadow demand market". Potential renters that are out of the market because they are sharing housing. Some analysts are pointing to this as further justification for continued rent growth and demand. When these folks get back on their feet, they will begin to seek out their own places....which would be predicated on a strengthening economy, job growth and net wage growth. 

Being the eternal devil's advocate I felt it prudent to point out how the "Children of the Great Depression" have always been referred to as the frugal generation. That our grandparents who survived the Great Depression were great savers, lived cheaply and were proud to reuse and buy used. If we've taught ourselves to be frugal again why would we, or our renters be so quick to go back to our old ways? Have we spawned a new era of living below our means and is it not only acceptable to share but smart? Is the era of the McMansion over? 

Good Things Are Ahead.

John