Rents have increased at highest pace in nearly 30-years
April 3, 2018United States Tops the List
April 3, 2018Most of the recent growth in supply of rental units has actually been in the single-family rental market. The single family share of rental housing has grown from 34% to 40% over the past 10 years. While large institutional investors have entered the single-family market in recent years, these large investors have only captured a 12.5% market share. This means that individual investors still own a whopping 87.5% of all single family rental homes.
Vacancy rates have also declined recently (see chart above). This gives investors greater pricing power when setting rents. In fact, rent increases have far outpaced inflation in recent years (see chart below). Add this to the growth in house prices we’ve experienced during that same time period, and it seems like a great time to be a real estate investor!
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