Apartment Occupancy Reaches New High
If you’re looking for growth, pay close attention to rentals, I noted May 6. 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. 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.
Today, we have confirmation of further strengthening.
It doesn’t matter how volatile the markets are with the Fed and Greece wreaking havoc, there’s no stopping the growth of commercial real estate.
“America's rental apartments are full,” notes CNBC. “Historically full, in fact.”
The U.S. occupancy rate now sits at 95.3% for May. That’s the highest on record, it notes. "The May rate historically is the start of each year's occupancy peak, meaning occupancy should remain at the current level or higher," said Stephanie McCleskey, Axiometrics' vice president of research, as quoted by CNBC.
With higher occupancy, we’ll see higher rents. That means apartment owners and investors are having quite a good year so far. It’s been pushed by Millennials just out of school, and downsizing baby boomers.
Some experts say we’re not building enough to meet the growing demand, meaning the opportunities in rentals is about to get even more explosive.