Owning a single-family Plano 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. For rental property investors, information is power. To get you started, 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.
According to statistics, the national average rent in the U.S. has grown to 36% in the last decade. 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 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.
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 just goes to show that recession years do not always result in falling property values.
3. More people than ever are renting instead of buying.
With the decade-long sustained growth, the renter population in the U.S. is now over 100 million. Between 2010 and 2018 alone, the number of renters increased by more than 9 million people! In the same period, there were only just over 8 million new homeowners. Around 34% of the general population are currently renting their homes. This is the largest share of renters the U.S. has had 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 remained steady over the last decade, with very minimal growth. For a nation with just under 44 million renters, there are only about 43 million rental homes. Therefore, the demand for rental homes continues to outpace availability, and residential vacancy rates remain very low in most 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 One Source can help! Our expert team of Plano property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 214-960-1612 to learn more.
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