The real estate market has undoubtedly gone through an extensive period of uncertainty in the last few years, especially following the pandemic. There’s been a drastic rise in mortgage interest rates, prompting thousands of prospective homeowners to opt out from investing and continue to live on rent.

As a result, the rental property market has been hotter than ever in the last few decades. It is prompting savvy investors to invest in apartments, condos, and other rental multifamily properties. However, as the market stabilizes, we might see some changes in 2023.

So, keep reading to learn about four rental property investment trends before splashing your cash if you’re looking to invest next year.

4 Highly-Expected Rental Property Investing Trends in 2023

1. A Sharp Rise in Fractional Rental Property Investing

As rental properties become more expensive to acquire due to rising demand and limited supply, there’s been a rapid rise in fractional rental property investing through REITs and real estate crowdfunding. Many savvy investors with limited budgets want to own fractions of rental properties and generate a steady percentage-based income.

2. Tech Advancements

In 2023, high-tech will continue to drive the real estate investing market with new platforms that make the process even more hassle-free and profitable. Similarly, as material prices continue to soar, construction companies will rely heavily on powerful software to manage rental property construction projects.

3. Stronger Demand in Rural and Secondary Markets

With remote work dominating business markets, millions of employees are relocating from urban areas to suburbs and rural towns to save money. As a result, the rural rental property market is expected to see a significant rise in demand in 2023 as more families continue to move away from large cities to smaller towns.

4. Rising Rent Prices

Finally, homeownership costs are expected to rise in 2023 due to inflation, economic recession, and high-interest rates. Therefore, the demand for rental properties will grow stronger than ever before. As a result, landlords are likely to raise their rent prices and enjoy minimal tenant turnover due to the chronic shortage of affordable housing, especially in urban cities.

Wrapping Up

2023 is expected to be more dynamic than the real estate market in previous years. As a result, there will be plenty of lucrative opportunities for investors looking to acquire rental properties for income generation and wealth protection.

With these highly-expected rental property investing trends, you can make more informed decisions related to the property and investment type, timing, and other essential factors that can ensure success.

If you’re ready to get started right away, head to CHRE right away and explore our vast range of multifamily rental properties for sale in Rio Grande Valley.