1. The national average rent increased by 36% in the last ten years.
According to statistics, the national average rent in the U.S. has grown to 36% in the last decade. These increases can be connected to various factors ranging from a change in renter demographics to a growing job market. 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.
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%. This supports that recession years do not always result in 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. In the same period, there were only just over 8 million new homeowners. 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.
There has only been small evidence of growth in the number of renter-occupied housing units in the United States in the last decade. The U.S. has about 43 million rental homes for just 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 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 Abound can help! Our expert team of Jenks property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 918-984-4433 to learn more.