2016 is expected to be another strong year for residential rental housing. The following are excerpts from the 2015 Harvard Joint Center for Housing Studies.
- The decade long surge in rental demand is unprecedented.
- During the past 10 year period, US households that rent rose from 31 percent to 37 percent. (The largest gain in any 10 year period on record)
- Growth in renters crosses all age, income and household categories.
- Vacancy rates are now at their lowest point since 1985.
- Rents rose 3.5 percent on average – the fastest pace in nearly 30 years.
- Despite the conversion of millions of single-family homes to rentals and an upsurge in multifamily construction, the supply has not responded fully to the rising tide of demand.
- Three major demographic trends will shape rentals housing demand over the next 10 years.
- First, the aging of the millennial generation will continue to boost the number of new renter households.
- The Second trend supporting strong rental demand is the growing minority share of households.
- The third demographic trend is the movement of the baby-boom generation into the 70-and-over age group, significantly increasing the number of senior renters.
This is a good time to consider buying additional rental property. We remain bullish on single-family and small multi-family investment. As with any investment, it is extremely important to ensure the investment quality is sound and there is a strong system in place to manage the daily operations. If you would like to discuss specific investment opportunities please call Kit Garren, CPM®, MPM® or Ashley Cates at (800) 789-1135 or firstname.lastname@example.org