Owning a single-family Houston rental property can be a challenging, exciting, and profitable way of building wealth. But your wealth can only grow in proportion to the extent that you understand the rental real estate market. Information is a very powerful tool for a rental property investor. 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 U.S., the national average rent has gone up by 36% in the last decade. 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. Because of this, twenty U.S. cities now have a renter majority from a homeowner 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.
There has also been a huge increase in housing prices in the last few years, leading to a rapid rise in property values in markets all over 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.
The renter population in the U.S. is now over 100 million strong after more than a decade of sustained growth. 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 barely increased over the last decade. 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. This strong demand drives 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 Affiliates can help! Our expert team of Houston property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 713-539-5765 to learn more.[/vc_column_text][/vc_column][/vc_row]
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.
