Investing in single-family Idaho Falls rental properties can be a challenging, exciting, and profitable way to build wealth. But to be truly able to build wealth, you must understand the rental real estate market. When you are a rental property investor, information is power. Given that, 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. Factors such as changes in renter demographics and a booming job market have driven these increases. On a national level, in fact, the demand for rental homes and the number of renters increased two times faster than the number of homeowners. There are twenty U.S. cities that have shifted from being a homeowner majority to a renter majority in just 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.
There has also been a huge increase in housing prices in the last few years, leading to a rapid rise in property values in markets all over 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%. 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 country has seen an increase in the number of renters by more than 9 million people. In the same period, there were only just over 8 million new homeowners. Currently, about 34% of the general population are renting their homes, making this the largest share of renters the U.S. has seen 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. For a nation with just under 44 million renters, there are only about 43 million rental homes. It is, therefore, not surprising that the demand for rental homes is greater than the availability, and residential vacancy rates are very low in a lot of markets across the country. This high demand is driving competition among both renters and rental rates.
Given these facts, you can see that there has never been a better time to invest in the rental real estate market. And Real Property Management Southeast Idaho can help! Our expert team of Idaho Falls property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 208-522-2400 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.
