1. The national average rent increased by 36% in the last ten years.
Statistics show that in the last decade, the U.S. national average rent went up by 36%. Factors such as changes in renter demographics and a booming job market have driven these increases. On a national level, the demand for rental homes and the number of renters grew twice as fast as the number of homeowners! This increase has shifted twenty U.S. cities from a homeowner majority to a renter majority in the last ten years. These have shown us that there has been a significant lifestyle change for many Americans.
2. Rental properties appreciated an average of 5.2% every year over the last ten years.
Housing prices have increased in the last few years, leading to a rise in property values in many markets around the country. On a national level, property values went up at an average rate of 5.25% each year in the last decade. According to some metrics, 2021 saw the highest appreciation in home values on record – an average of 14.5%. This supports that recession years do not always result in falling property values.
3. More people than ever are renting instead of buying.
The renter population in the U.S. is now over 100 million strong after more than a decade of sustained growth. The number of renters has grown by more than 9 million people between 2010 and 2018. In contrast, new homeowners only numbered 8 million in the same period. About 34% of the general population are currently renting their homes. Since the 1960s, this is the largest share of the renters the U.S. has seen.
4. As demand for rental homes increases, supply falls behind.
The number of renter-occupied housing units in the United States has barely increased over the last decade. There are around 43 million rental homes in the nation for the under 44 million renters. It is not a surprise that demand for rental homes continues to be higher than availability, and residential vacancy rates are very low in many markets around the country. This high demand is driving competition among both renters and rental rates.
Given these facts, you can see that there has never been a better time to invest in the rental real estate market. And Real Property Management Success can help! Our expert team of New Bedford property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 908-239-7579 to learn more.