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4 Facts About the 2022 Rental Real Estate Market

Money Bag and Blocks Reading 2022 with a Wooden Model HouseOwning a single-family Montvale rental property can be a challenging, exciting, and profitable way of building wealth. But this is only true if you really 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.

Statistics show that in the U.S., the national average rent has gone up by 36% in the last decade. Some of the factors that brought about this increase include shifts in renter demographics and 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 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.

Housing prices have increased in the last few years, leading to a rise in property values in many markets around 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%. Data like these confirm that recession years do not automatically mean 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. Around 34% of the general population are currently renting their homes. This is the largest share of renters the U.S. has had since the 1960s.

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. 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. This high demand is driving 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 Concierge can help! Our expert team of Montvale property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 201-514-1603 to learn more.

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