By TOM HARRIS Associated Press writerWASHINGTON (AP) When it comes to real estate and the job market, a person’s age is often a major factor in determining whether or not they’re going to be able to save for their future.
That’s because people typically age at the same rate they did a decade ago, which makes it easier for people to save in the early years of a job search.
But the average age of an owner-occupied rental property is still rising.
The median age of rental properties nationwide increased from 39.4 years in 2007 to 42.2 years in 2016, according to an Associated Press analysis of census data from the National Association of Realtors.
That was the fastest rate in more than 20 years, but older renters are still more likely to be priced out of a property than younger ones.
The real estate industry is seeing its younger, less educated renters come to appreciate its value.
A large percentage of renters are renters who grew up in households with parents with high incomes, said Brian Geddes, president of the National Renters Alliance.
In recent years, the rental market has become more diverse.
Young renters who may not have seen a big boost in rent during their college years are now entering the market.
But older renters who have been paying down their mortgages for years are starting to see a bigger boost from renting in more diverse areas, he said.
“There’s a new generation of renters, a younger generation of people that are entering the rental economy and they’re looking for rental properties with a lower rent,” Gedds said.
The average rent for a two-bedroom rental in 2017 was $2,700, according the association.
The association estimates that the median rental home is now $6,000.
Rental vacancy rates have declined for two consecutive years, with average vacancy rates in New York, the nation’s second-largest metro, dropping from 6.6 percent in 2016 to 5.5 percent in 2017.
The national vacancy rate is lower than the national average, but that hasn’t kept older renters from finding new properties to rent.
Older renters are also more likely than younger renters to be looking for rentals with lower rents, which means older renters need to keep in mind the rental rate when considering the value of the rental property, said Gedding.
In some markets, like the San Francisco Bay Area, rents have increased since 2010, and in some places, like San Jose, rents are still increasing.
Renters who are looking for a rental property with lower costs should consider properties with lower maintenance costs, he added.
Renting a smaller rental property that’s in a more walkable neighborhood could make it more affordable, but a larger rental property might be better, he advised.
That can be especially true in the Bay Area because there’s a greater demand for walkable rental properties in San Jose.
But in many places, including New York City, it’s hard to find rental properties that offer the same type of amenities and amenities that are available in smaller properties, said Michael Zandberg, chief economist of Real Estate Insider, a research and consulting firm.
Rentals that don’t offer those amenities are going to have lower prices, and that’s going to help people with higher incomes, he told the AP.
For example, a home that is priced $100,000 might have lower maintenance than a home priced $1 million, he noted.
“You don’t want to have a $1.1 million property because you can’t afford to rent a $100 million property,” Zandenberg said.
Rent control laws, including the federal Fair Housing Act and state laws, can make it harder for renters to save up for their property.
For instance, some states require that renters pay a deposit before they can move in to a property, which can be prohibitively expensive for many renters.
And in many cases, renters must be covered by a rental subsidy.
In New York state, for instance, renters who receive the state’s $15.50-per-month subsidy for rent must pay $1,500 a month before they are eligible for it.
If they do not have the $15-per, $2-per or $3-per monthly subsidies, they may not qualify.
Rent restrictions can also affect a property’s appeal.
New York has a three-tier housing ladder, with a 10-percent chance of a house being sold, Zandberger said.
For smaller properties that aren’t on the list, a buyer can still move in and get a bigger return.
And a property that is listed on a website can be sold to someone who has a higher price, but has no guarantees about the property’s condition, ZANDBERG said.
A property with a “very good” rating on Rent.com is usually considered a great value.
But a property with “poor” or “somewhat poor” ratings is often not worth