Your Rent is about to Skyrocket… Here's why.

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If you’re looking for sustainable near-term growth, I’ve noted, pay very close attention to rentals. That’s because rental apartments are filling up… and fast. 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.

Now, according to the Census Bureau’s U.S. rental vacancy rate has fallen to just 6.8%, according to Bloomberg.

That’s the lowest level since 1985.

Short supply means rents could move significantly higher. A lot of this has to do with new household formation. More than two million new households formed last year with most of that coming from renters.