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%. Some of the factors that brought about this increase include shifts in renter demographics and a booming job market. In fact, the national demand for rental homes and the number of renters has ballooned two times faster than the number of renters. Because of this, twenty U.S. cities now have a renter majority from a homeowner 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.
Over the last few years, there has been a rapid rise in property values in many markets across the country mainly brought about by the soaring housing prices. 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%. Data like these confirm that recession years do not automatically mean falling property values.
3. More people than ever are renting instead of buying.
After more than ten years of sustained growth, the U.S. now has a renter population of over 100 million strong. The number of renters has grown by more than 9 million people between 2010 and 2018. Comparatively, only a little over 8 million people became new homeowners in the same period. Currently, there are approximately 34% of the general population are renting their homes– the largest percentage of renters the U.S. has seen since the 1960s.
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. The U.S. has about 43 million rental homes for just under 44 million renters. Therefore, the demand for rental homes continues to outpace availability, and residential vacancy rates remain very low in most markets across the country. This strong demand drives 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 Heritage can help! Our expert team of Houston Heights property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 832-449-5263 to learn more.