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Rental Property Investing Trends

rental property investing trend

The real estate market witnessed a series of crises over the last few years. Specially faced the COVID-19 pandemic and during that period the residential market affected the investors of the real estate industry. The rental property prices in real estate fluctuate when investing in rental property, vacancy rates, and property ownership expenses. Now real estate is receiving positive signals and starts to boom. We’ve done research regarding the rental property investing trends. Let’s look into the trends in 2023. 

Increased Interest in Long-Term Airbnb Rentals

The important trend that the pandemic provoked is the rental strategy of investing in short-term and long-term rentals. When there is a housing need for traveling professionals in various locations, they are looking for furnished apartments where  Airbnb raises their long-term rentals. This rental strategy gives higher income than rental properties. It also gives stability and predictability than rentals for vacation which results in a return on investment. As people work remotely continuously, many will love to travel to new locations for some period of time, which will increase the growth of furnished rental apartments in 2023.

Investment in Fractional Rental Property

The major trend is fractional investment within the real estate market. Technology made this and the pandemic is not the reason. Platforms like Fund Rise, Realty Mogul, and Crowd Street allowed small-scale investors to own a fraction of properties with investors. Being affordable and passive makes this a beneficial rental property investing strategy. Fractional investing will accelerate in 2023 as the technology continues to grow in real estate.

Advancements in Technology

High tech will be the main driving force in the industry and the journey of investors. It will be from identifying investment opportunities that give profit, purchase income properties, renting and managing short-term rental properties, and long-term rental properties. This is also expected for the tech companies to grow and new technologies to appear in the coming years to meet the needs of investors. This makes the process of investing in real estate more profitable and seamless. The technology helps to reshape what tenants seek.

Strong Demand in Markets

Rental property investing is the growth of small and rural markets. The real estate market was affected in many ways by the pandemic and remote work across several industries. The moves from primary market to secondary and tertiary markets are the changes in industry to keep in mind by the investor. Working from home is a promising job and the criteria increase demand for rental property. Peace, comfort, and security are the most important ones preferred by professionals and families. To create opportunities for investors, people decide to buy a home and others rent a home. For investing in long-term rental property, smaller markets offer more demand for high returns. All these come with low prices and make them affordable for new investors. 

Recover Short-Term Rental Industry

The COVID-19 pandemic had a major effect on the rental industry and now the market started to recover. In 2023, short-term rentals are expected to re-establish their position as profitable rentals than long-term and traditional rentals. When people resume traveling Airbnb rental properties will increase the demand. This will allow for high rates and push return on investment. If interested in rental property, focus on the demand of Airbnb. 


In 2023, we are expecting the rental market to be dynamic as always. As long as the investors analyze the market, there will be opportunities for investing. The investors must use data, follow development, and forecast. There will be a need for investors to invest in rental property for real estate and landlords to upgrade their properties. That should suit the multi-living situations, increase home technology demand, and work from home lifestyle. As the marketplace is unpredictable, keep an eye on trends like these.  So you can start preparing for the rental investment.

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