Final answer:
An increased demand for rental property is most likely caused by a shift in demand due to higher incomes or a change in tastes that make a suburb or town more popular, which leads to a rise in rental prices and quantities.
Step-by-step explanation:
A property manager should be aware that an increased demand for rental property is MOST likely caused by a(n) shift in demand due to factors like higher incomes or changes in tastes. For instance, if a certain suburb becomes more desirable or if local businesses are booming and providing higher incomes to residents, these changes can lead to a shift in the demand curve for rental housing to the right. An example of this can be seen when the original equilibrium, with an equilibrium price of $500 and equilibrium quantity of 15,000 units, experiences a change in demand causing the new equilibrium price to rise to $600 and quantity to increase to 17,000 units. This is often a result of greater income or a change in tastes, which are significant factors contributing to the increased demand for rental property.