Having single-family Roslindale rental properties are challenging, exciting, and profitable ways to build your wealth. However, the most effective way to build wealth is by really understanding the rental real estate market. When you are a rental property investor, 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%. These increases can be connected to various factors ranging from a change in renter demographics to a growing 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 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 supports 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 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. Data shows that around 34% of the general population currently rent their homes. The U.S has not seen this large a share of renters 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. There are around 43 million rental homes in the nation for the 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.
Knowing these facts, this is the best time to invest in the rental real estate market. And Real Property Management Boston can help! Our expert team of Roslindale property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 617-522-0099 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.