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. Various factors have brought about this increase– from shifts 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! There are twenty U.S. cities that have shifted from being a homeowner majority to a renter majority in just 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.
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 just goes to show 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. Between 2010 and 2018 alone, the number of renters increased by more than 9 million people! 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.
The number of renter-occupied housing units in the United States has remained steady over the last decade, with very minimal growth. 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 Mid Peninsula can help! Our expert team of Menlo Park property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 650-696-1800 to learn more.