Owning a single-family Hampden rental property can be a challenging, exciting, and profitable way of building wealth. But this is only true if you really understand 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%. 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. There are twenty U.S. cities that have shifted from being a homeowner majority to a renter majority in just 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.
Since housing prices have been rising in the last few years, there have also been 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. The number of renters has grown by more than 9 million people between 2010 and 2018. 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.
The number of renter-occupied housing units in the United States has barely increased over the last decade. The U.S. has about 43 million rental homes for just under 44 million renters. It is, therefore, not surprising that the demand for rental homes is greater than the availability, and residential vacancy rates are very low in a lot of markets across the country. This high demand is driving 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 Acadia can help! Our expert team of Hampden property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 207-561-7482 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.