Investing in single-family Frisco rental properties can be a challenging, exciting, and profitable way to build wealth. But your wealth can only grow in proportion to the extent that you understand the rental real estate market. When you are a rental property investor, information is power. To get you started, here are four important facts about the 2022 rental real estate market.
1. The national average rent increased by 36% in the last ten years.
According to statistics, the national average rent in the U.S. has grown to 36% in the last decade. We can attribute these increases to a variety of factors, from a shift in renter demographics to a booming job market. On a national level, the demand for rental homes and the number of renters grew twice as fast as the number of homeowners! Because of this, twenty U.S. cities now have a renter majority from a homeowner majority in the last ten years. These have shown us that there has been a significant lifestyle change for many Americans.
2. Rental properties appreciated an average of 5.2% every year over the last ten years.
Over the last few years, there has been a rapid rise in property values in many markets across the country mainly brought about by the soaring housing prices. 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 just goes to show that recession years do not always result in falling property values.
3. More people than ever are renting instead of buying.
The renter population in the U.S. is now over 100 million strong after more than a decade of sustained growth. Between 2010 and 2018 alone, the number of renters increased by more than 9 million people! In contrast, new homeowners only numbered 8 million in the same period. Data shows that around 34% of the general population currently rent their homes. The U.S has not seen this large a share of renters since the 1960s.
4. As demand for rental homes increases, supply falls behind.
The number of renter-occupied housing units in the United States has barely increased over the last decade. There are around 43 million rental homes in the nation for the under 44 million renters. Therefore, the demand for rental homes continues to outpace availability, and residential vacancy rates remain very low in most markets across the country. Because of this strong demand, there is intense competition among both renters and rental rates.
Knowing these facts, this is the best time to invest in the rental real estate market. And Real Property Management Legend can help! Our expert team of Frisco property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 214-227-2404 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.
