What the Smart Money Knows
If you’re looking for growth, pay close attention to rentals. Over the last decade, rental fees have grown at two times the pace of income on the heels of weak income growth, stronger demand, and lack of supply, notes Property Wire. In fact, Americans paid $20.6 billion more on rental properties in 2014 above 2013.
And there are no signs of slowing growth, creating quite an opportunity for rental property owners and smart investors.
More Americans are finding themselves renting because they can’t afford homes on the heels of stricter mortgage lending, a crazed jobs market, and even crushing student debt.
Others have swapped their homes for inexpensive smaller apartments, too.
In fact, the number of Americans renting sits at the highest point in 20 years, as homeownership tumbles below 65%. And let’s face it. Millions of Americans are far more likely to rent than own these days.
While some economics are showing signs of improvement, the National Association of Realtors says the “landlord’s market” lives on with rent growth expected to grow another 3.9% in 2015.
“They don’t expect things to slow down either,” Rent.com noted in a press release, as 63 percent of property managers predict that rental rents will continue to rise by an average of 6 percent in the next 12 months, as reported be The Fiscal Times.