Having single-family Hampton rental properties are challenging, exciting, and profitable ways to build your wealth. However, the most effective way to build wealth is by really understanding the rental real estate market. Information is a very powerful tool for a rental property investor. To start, here are four key facts you need to know about the 2022 rental 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, the demand for rental homes and the number of renters grew twice as fast as the number of homeowners! 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 data indicate 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 supports 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 country has seen an increase in the number of renters by more than 9 million people. In the same period, there were only just over 8 million new homeowners. About 34% of the general population are currently renting their homes. Since the 1960s, this is the largest share of the renters the U.S. has seen.
4. As demand for rental homes increases, supply falls behind.
There has only been small evidence of growth in the number of renter-occupied housing units in the United States in the last decade. For a nation with just under 44 million renters, there are only about 43 million rental homes. It is not a surprise that demand for rental homes continues to be higher than availability, and residential vacancy rates are very low in many markets around the country. This high demand is driving competition among both renters and rental rates.
Given these facts, you can see that there has never been a better time to invest in the rental real estate market. And Real Property Management Dominion can help! Our expert team of Hampton property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 757-395-4274 to learn more.
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.