Homeownership rates among millennials continue to decline, as younger adults struggle to meet the cost of renting and saving for a down payment on a home. The result is that more than half of millennials (53%) are currently renting, with only 39% owning their home. Residential real estate developers and property managers have taken note of this trend, and the demand for renovated homes that offer modern amenities and an updated aesthetic has increased. These features appeal to renters who want to make their home feel like it’s theirs without having to commit to buying a house or condo. Residential developers have responded by renovating properties with the kinds of features Millennials want without going so far as to build new condo developments from scratch. Here is everything you need to know about renovated houses for rent in Redondo beach:
Contents
What is a Renovated Home?
A renovated home is a property that has undergone some level of modernization without having been demolished and rebuilt from the ground up. Commercial and industrial real estate is also sometimes renovated, though the term is most commonly used in reference to residential properties, particularly multi-unit apartment buildings. There are many reasons why a residential property would be renovated. An existing property could be modernized to update its aesthetic, increase energy efficiency, and meet current building codes. A renovation can also be undertaken to convert a property from one use to another, such as converting a single-family house into a multi-unit apartment building.
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Why Are Renovated Homes Becoming so Popular?
More than half of millennials will likely never own a home, and many people in their 20s and 30s would rather rent than take on the financial burden of homeownership. Home renovations have increased as a result, and real estate developers have responded with a greater number of renovated homes and apartments that offer modern amenities and a stylish aesthetic. While millennials are currently driving much of the demand for renovated homes, the trend is expected to continue to grow among all age groups. A survey conducted by Houzz found that two-thirds of homeowners expect to renovate in the next five years, with many opting for renovations that are both costly and extensive. The same survey revealed that many homeowners are looking to adopt the aesthetic and features of modern architecture in their renovations, suggesting that demand for renovated homes and modern architecture will likely only increase in the coming years.
Why Are Millennials Choosing to Rent?
The new generation of renters is largely made up of young professionals and people in their 30s who are delaying marriage and having children, two milestones that often inspire people to buy a home. Millennials’ renting is also influenced by factors such as high student loan debt and low wages. Many millennials are struggling financially, and homeownership is generally considered the best way to build wealth. Owning a home gives you a piece of real estate that you can leverage to get a mortgage and make monthly payments. Renting, on the other hand, just involves paying money each month to a landlord. In addition, homeownership is often seen as a path to financial security in old age. The cost of renting, on the other hand, can get very high in older, more urban areas.
What Features are Included in Renovated Homes?
The features included in a renovated home will vary greatly depending on the cost and type of renovation, the size of the property, and the tastes and expectations of the home’s owner(s). A renovation that includes the installation of new appliances, flooring, and lighting fixtures would be considered a minor renovation, while a renovation that involves reconfiguring the layout of a home or building additions would be considered a major renovation. Some of the features that are commonly included in minor renovations include: New interior finishes- including painting, flooring, and appliances. Some of the features that are commonly included in major renovations include: New structural elements- including a new roof, repositioning rooms, or adding an extra room or an addition.
The Drawbacks of Renovated Homes for Rent
While renovated homes are undeniably appealing, some drawbacks of these properties must be considered before renting. Although renovations can often be a worthwhile investment, tenants should be mindful of potential drawbacks, including: Delays in the completion of renovations- including the installation of new appliances and fixtures. If a renovation is being done by a contractor, it could take months to complete. Disruption of daily life- including noise and inconvenience. While renovations will likely be planned to be done while most people are at work, they are bound to disrupt daily life to some degree in most cases. Higher rental rates- including utilities, maintenance, and building fees. Potential increase in rental rates when the property has been renovated. If a landlord renovates their property with the goal of increasing their rental rates, they may raise the rates once the renovations are complete.
Conclusion
Many people are choosing to rent, and residential developers are responding with renovated homes that feature modern and stylish features. These renovations often include new appliances, flooring and lighting fixtures, among other things. Older properties can also be converted into multi-unit apartment buildings through renovations. While renovated homes are undeniably appealing, some drawbacks of these properties must be considered before renting. These drawbacks include delays in the completion of renovations, potential disruption of daily life, and the potential for rental rates to increase once the renovations are complete.
