Investing in single-family Front Royal rental properties can be a challenging, exciting, and profitable way to build 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. 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.
Statistics show that in the last decade, the U.S. national average rent went up by 36%. Factors such as changes in renter demographics and a booming job market have driven these increases. 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 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.
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 supports 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 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. About 34% of the general population are currently renting their homes. Since the 1960s, this is the largest share of the renters the U.S. has seen.
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. 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. Because of this strong demand, there is intense 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 Elevation can help! Our expert team of Front Royal property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 540-409-5857 to learn more.
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