We’ve been saying for the past few years that number of quality renters looking for a place to live has never been higher. This was simply based off of our own observations in our local markets, but according to new data, it wasn’t just a feeling, it was a fact.
So basically, last year 36.6% of people owning homes were renting them out according to the Pew Research Center. Let’s say that again, thirty. six. percent.
In the past 10 years, there was a growth of nearly 8 million households, but home ownership percentages remained the same, but rentals increased by 10%.
Here’s a graph from the Pew Research Center to visualize this:
Why is this happening though?
Well for one, millennials simply aren’t purchasing homes. Crazy high student debt, higher cost of living, and difficulties getting jobs out of school are one of the main reasons. In fact, 65% of Americans who are 35 years and younger are currently renting.
So what does this mean for you as a landlord?
Simply put, this is really good news.
- It creates massive competition for finding rental properties which has driven up rents to a point we’ve never seen, ultimately netting you more money.
- It allows for a much larger pool of tenants to select from, allowing us to find better quality people that will take care of the home.
- When the market flips, and it’s easy to buy again, prices will rise, and so will equity.
All in all, you’re in a great position as a rental property owner, and we just wanted you to take a moment and pat yourself on the back!