As you might expect, the state of the economy and the housing market - both locally and nationally - can have a huge impact on how your investment will fare in the upcoming year. The Wilmington area has been fortunate in that it has been able to show a strong recovery from not only the recession that hit the entire country, but also from the storms that hit the area in 2018 and 2019. Though the market can and will always fluctuate, all indicators point to our area being a great spot for real estate investors to own - and continue to buy - properties in 2020.
Local economists are predicting economic growth in the Wilmington area to be greater than the national growth for 2020, with local job growth and wage growth continuing to expand at an above-normal rate. These factors continue to drive an increased population, housing growth and housing value appreciation.
In 2019, the greater Wilmington area saw a booming local real estate market. With real estate values having recovered from the recession, many reluctant landlords - those who never intended to be rental property owners - chose to sell their rental properties and exit the rental market.
At Sweyer Property Management, we have seen a big increase in true investors vs. reluctant landlords. Anytime you see investors confident in a market and willing to continue to put money into it, it’s a good sign that the market in question will continue to be on an upward trajectory.
What does this mean for those who choose to remain investors? With an ever-increasing demand for rentals, investors can continue to command higher rental rates for their properties. Rental rates typically increase 5-7% each year in our area, and this trend is set to continue in the coming year.
The occupancy rates in our area are holding strong at 95% - theoretically this is considered full occupancy. With the continuous growth in the Wilmington area in the form of new job opportunities and steady enrollment at the local colleges, rates should stay at that point if not increase as we get into the busier summer months.
Overall, the rental market is very strong in southeastern NC. There is much greater demand for rental housing than there is supply, and, with that, rental rates should continue to appreciate as we go through 2020.
If you're a property owner considering renting out your home or an investor interested in purchasing more properties and curious what they might bring in, please feel free to reach out to our team of professionals. With things trending towards the positive for investors, it is a great time to be a property investor in southeastern NC.