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%. Some of the factors that brought about this increase include shifts in renter demographics and a booming job market. On a national level, in fact, the demand for rental homes and the number of renters increased two times faster than 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 show us that there is 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%. Data like these confirm that recession years do not automatically mean 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! Comparatively, only a little over 8 million people became new homeowners in the same period. Currently, about 34% of the general population are renting their homes, making this the largest share 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. 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.
Based on these facts, this is the best time to invest in the rental real estate market. And Real Property Management Washington DC can help! Our expert team of Bloomingdale property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 202-813-9993 to learn more.