How is the U.S. Rental Market?
Real estate investors and rental property owners will be happy to hear that the U.S. growth rate of renters continues to increase. According to the Rental Protection Agency’s rental clock, which gives statistics about renters and landlords (updated every 3 minutes), there continues to be an increase in the number of renters in the U.S. As of today, Jan. 22, 2017, there are 2,654 new renters every day.
In fact, a Pew Research Center analysis of Census Bureau housing data shows that there are more U.S. households headed by renters than at any point since at least 1965. Interestingly, the census also shows that in 2017, 65% of households headed by millennials were rentals, versus 57% in 2016. According to the Census Bureau, homeownership rates were reported at 63.9% near the end of 2017, which is a 20-year-low for Americans.
Further good news for rental property owners is that vacancy rates are dropping as well, proving the demand for rental units is still there. And Tennessee is lower than the national average for rental vacancies! As a result, Zillow reported that the average rent rates are on the rise. Combine that with the fact that the U.S. had over 700,000 new renters in 2015 alone. You can see there is a lucrative market for rental property owners.
3 Factors Combined Lead to the “Roommate Effect”
High debts, high rent rates, and low incomes have come together to create “the roommate effect.” Zillow also studied how the “roommate effect” will impact the rental market. Adults today are doubling up in rental homes as a way to save money. In a recent study, the number of American renters living with roommates or family members was over ⅓ of the adult population.
According to Stan Humphries, Chief Economist for Zillow.com, “All of these doubled-up households represent tremendous potential energy for the market. And when these compressed households begin to unwind and these millions of Americans do start to create their own households, demand will bounce back, possibly even causing household growth to outpace population growth.”
Property Management help in Middle Tennessee
These studies show that rental markets are stable and will be for some time. So now is a good time for investing in real estate. This applies as well if you are wondering “How is the rental market in Middle Tennessee?” As the trusted leader in Rutherford County property management, Real Property Management Rental Solutions is here to help you as you grow your portfolio. Our overall goal as a company is to save property owners the time, money, and headaches often associated with rental property. We offer solutions for every aspect of property management and are experts and lifelong residents of the Middle Tennessee area. As you continue to grow your portfolio, lean on RPM Rental Solutions to guide you along the way. Give us a call today at 615-900-4067 for your free market evaluation or click here!