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. We can attribute these increases to a variety of factors, from a shift in renter demographics to a booming 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 data indicate a significant lifestyle change for many Americans.
2. Rental properties appreciated an average of 5.2% every year over the last ten years.
Since housing prices have been rising in the last few years, there have also been rapid increases 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.
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 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. 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.
Based on these facts, this is the best time to invest in the rental real estate market. And Real Property Management Cache Valley can help! Our expert team of North Logan property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 435-753-5200 to learn more.