Operators of Dwellings Other Than Apartment Buildings

SIC 6514

Industry report:

This industry includes establishments primarily engaged in the operation of dwellings other than apartment buildings. By definition, such dwellings contain four or fewer housing units. This industry does not include hotels, rooming and boarding houses, camps, and other lodging places for transients. Hotels and motels are classified in SIC 7011: Hotels and Motels; rooming and boarding houses are classified in SIC 7021: Rooming and Boarding Houses; and camps are covered in SIC 7032: Sporting and Recreational Camps.

This segment of the real estate industry is relatively small and primarily populated by individual owners of rental properties (generally houses). Large chains or companies are typically limited to regional influence. As an established, albeit minor, element of the larger real estate industry in the United States, establishments involved in this industry are influenced by the same economic and social factors that impact the largest real estate property management firms.

According to the National Multi Housing Council (NMHC), in 2010 about 31 percent of Americans rented housing. Approximately 38.9 million of these people lived in single-housing rentals; another 18.4 million lived in structures with two to four units. Overall, New York City had the highest percentage of housing units occupied by renters, with 66 percent, followed by Boston with 63 percent, San Francisco with 62 percent, and Los Angeles with 61 percent.

As the U.S. economy surged, beginning in 1992 and continuing into the new millennium, rental properties in general became more appealing to small investors, both companies and individuals. Individual investors began to put more capital into investment properties even though federal tax changes in the late 1980s had limited deductions on investment property. Many of these individuals sought small properties in which to invest so that mortgages would be manageable or not necessary.

However, the economic downturn of the early 2000s, exacerbated by the terrorist attacks of September 11, 2001, sent the economy into a tailspin. To bolster consumer spending, the Federal Reserve reduced interest rates to historic lows, which, in turn, fueled the home buying market. Property values rose substantially as many Americans hurried to purchase or refinance while the rates were low. With the number of homeowners rising, the number of people seeking rental property declined proportionally, leaving the residential rental market with a lack of demand and a supply surplus. By 2005 it was a renters' market, with property managers sometimes offering rent rates below their property mortgage payment to attract renters.

In the late 2000s the housing bubble burst, but the accompanying economic recession dampened the market for rental units. By 2009, the national rental vacancy rate was up to a record 10.6 percent, according to Harvard's Joint Center for Housing Studies. However, the Harvard study also predicated that the total number of renters would rise by between 3.8 million and 5 million between 2010 and 2020, with minority households comprising the majority of renters by the third decade of the twenty-first century.

The residential rental market was highly diversified in the early 2010s with many properties owned and managed by single investors and partnerships. According to Dun & Bradstreet, 4,885 establishments engaged in the operation of dwellings other than apartment buildings in 2010. Together they establishments employed 22,593 people and generated almost $1.7 billion in annual revenues. The largest number of operators of residential buildings other than apartments were located in California, with 508, followed by New York with 399, Florida with 341, and Texas with 304. Alaska was the number-one state in terms of revenue, with $179.8 million, followed by California and Ohio, each with $155.4 million; New York with $144.4 million; and Missouri with $94.3 million.

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News and information about Operators of Dwellings Other Than Apartment Buildings

MDU market attracts notice as competition enters field. (multiple-dwelling-unit markets)
Multichannel News; December 15, 1997; 700+ words
...operators serving apartment buildings and other multiple-dwelling-unit markets...Private cable operators, direct...landlords and building operators...dishes, rather than a series of...more services than just video...Some cable operators are ...
MDU Market Attracts Notice As Competition Enters Field
Multichannel News; December 15, 1997; 700+ words
...operators serving apartment buildings and other multiple-dwelling-unit markets...Private cable operators, direct...landlords and building operators...dishes, rather than a series of...more services than just video...Some cable operators are ...
Cable TV Providers Try to Channel Clout; Apartment Residents Could Get Price Break, but Satellite and Wireless Firms Cry Foul
The Washington Post; April 15, 1996; 700+ words
...multi-dwelling" buildings -- apartment buildings, nursing...prisons and others. That means...charge in other subscriber...franchises to beat operators like us out...wire public buildings like schools...into the apartment-building business...lower prices ...
Ops upbeat on new MDU businesses. (multiple-systems operators; multiple dwelling units)
Multichannel News; July 8, 1996; 700+ words
...targeting apartment houses as...features, rather than loyalty...from greedy building owners that...with multiple dwelling units (MDUs...approximately 50 building owners, and...penetration in the buildings for which...tenants, rather than converting...page 3). Other ...
Smart Cities: Making Australian Precinct Energy Networks a Reality
Mondaq Business Briefing; March 11, 2016; 700+ words
...footprints than coal. Waste...heat to warm building spaces...individual dwellings, apartment buildings or a local...proposing that building owners with...gas with other forms of...Energy Market Operator to buy wholesale...Currently, building owners ...
Daily Briefing
The Commercial Appeal (Memphis, TN); November 1, 2007; 700+ words
...credit markets than when it met...It took less than a month for...to $700, building upon a fervor...cuts cable-apartment ties Federal...television operators have with apartment buildings, opening up competition for other video providers...multi-unit dwellings, or ...
Business briefs
Telegraph - Herald (Dubuque); November 1, 2007; 700+ words
...worth more than $2,000...along with other salaried workers...television operators have with apartment buildings, opening up competition for other video providers...multi-unit dwellings, or about...multi-unit dwellings. The rule...
Cable opponents blast change in pricing. (cable television)
Multichannel News; May 22, 1995; 700+ words
...high-rise apartments and compete...and SMATV operators say current...if a cable operator offers basic...multiple dwelling units, senior...citizens and other economically...classes of buildings. For instance, an operator could charge...100-unit building but ...

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