Having single-family Riverview rental properties are challenging, exciting, and profitable ways to build your wealth. But you can only be good at building wealth if you really understand the rental real estate market. For rental property investors, information is power. To start, here are four key facts you need to know about the 2022 rental estate market.
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%. Various factors have brought about this increase– from shifts in renter demographics to 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. 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.
The increase in housing prices in the last few years has led to 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.
The renter population in the U.S. is now over 100 million strong after more than a decade of sustained growth. Between 2010 and 2018 alone, the country has seen an increase in the number of renters by more than 9 million people. 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.
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 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 Empire can help! Our expert team of Riverview property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 813-867-7300 to learn more.
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