Determining Supply and Demand for Buy & Hold SFRs

[Ian Livaich]

Hello everyone,

I am currently researching local markets in South Jersey and trying to assess the supply and demand for SFRs for these areas in Camden County.  The markets are A-/B+ neighborhoods with pretty good schools, low crime rates, easy access to trains to Philadelphia, lots of restaurants, and good walkability.  Essentially, these areas are desirable for families.  When determining the average rent, I have looked at rentals on Craigslist, Zillow, and Padmapper for the target areas and have only seen 5-7 SFRs listed.  Out of those SFRs, only a few are comparable to the properties I am interested in -- 3BR/1-2BA.

I am curious as to whether you all would consider this a sign of low supply and high demand for renting?  Or low supply and low demand and more families are buyers rather than renters in these areas?  Do you have any further tips and suggestions to determine the supply/demand for renting?  I am researching for local realtors in the area who may be able to answer these questions.

I have also noticed that some apartment complexes nearby that mainly offer 2BR/1BA or 1BR/1BA are advertising free application fees, free first month's rent, etc.  While the type of renters in these apartments may differ as SFRs target more families, would these incentives indicate high supply and low demand for SFRs in the areas that I am targeting?

Thanks for your advice.

[Stephen Kappre]

There is a great deal of rentals listed on MLS as well as "sign in yard" like fsbo ... In hotter areas the sign is out for a few days and that's all it needs. Of course others are overpriced, etc.

Drive the neighborhoods you are interested in. I can send you rental listings in the areas you are interested in. Keep lookin on Craigslist etc. some of these places don’t even require an online listing. They just go that fast. 

Let’s meet up for coffee this week. 

Steve