Owning a single-family Cabot rental property can be a challenging, exciting, and profitable way of building wealth. But to be truly able to build wealth, you must understand the rental real estate market. For rental property investors, information is power. Given that, here are four important facts about the 2022 rental real estate market.
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. 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 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.
Housing prices have increased in the last few years, leading to a rise 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. 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. Around 34% of the general population are currently renting their homes. This is the largest share of renters the U.S. has had 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. For a nation with just under 44 million renters, there are only about 43 million rental homes. 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 Hometown can help! Our expert team of Cabot property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 501-701-4702 or 501-303-6870 to learn more.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
