Last week there came this snippet from a radio commentary: “No matter how business is doing, the landlord business is doing just fine.”
Especially in the context of last week’s nerve-rattling tumult on Wall Street, that remark seemed particularly relevant—especially for investors newly motivated to investigate the upside of Costa Mesa residential investments.
There is one national statistic that unambiguously points in a positive direction—one that current landlords from coast to coast should find comforting. The indicator in question is the Moving Rate—and it’s signaling stability.
In the common vocabulary of commercial business, the Moving Rate describes the “customer base” for the “product” that residential investors produce. It is the statistic that measures the rate at which renters move from one residence to another. In the latest available calculation, that rate continues to hover at the very bottom of the meter. According to the U.S. Census Bureau, the most recent accounting “hit an all-time low of 21.7% in 2017.” Especially considering that the Moving Rate for renters in 1988 was 35.2%—a little more than one in three—the increase in stability is notable. And there’s no evidence that it has budged since 2017.
It goes without saying that when renters stay put, landlords prosper. Not only is their rental income steady, but the costs associated with reconditioning a property following a moveout are avoided. Advertising and showing expenses are nil—as are the lost months of income that might result. Steady occupancy also means avoiding the extra time investment that recruiting new tenants can require—and steering clear of the risk that the new customer might prove less than reliable.
With so many costs being avoided or minimized, when the Census Bureau headlines “Overall Mover Rate Remains at an All-time Low,” it’s encouraging news for Costa Mesa investors considering the area of residential real estate. For a full look at today’s range of Costa Mesa investment possibilities, give us a call!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at email@example.com