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4 Facts About the 2022 Rental Real Estate Market

Money Bag and Blocks Reading 2022 with a Wooden Model HouseHaving single-family McDonough 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%. 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. Because of this, twenty U.S. cities now have a renter majority from a homeowner 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.

Over the last few years, there has been a rapid rise in property values in many markets across the country mainly brought about by the soaring housing prices. 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. 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, 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. 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. 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 Anchor can help! Our expert team of McDonough property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 770-506-1237 to learn more.

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