Opportunity in the rental market is truly heating up. Rates are rising, vacancies are dropping, and stockholders are aiming to buy properties for long-term rental revenue.
Landlords have enjoyed the edge since the housing emergency as increased interest from renters coincided with very little new supply of rental units. Rising mortgage rates, tighter borrowing needs and higher home prices have taken many individuals out of the home-buying market. And, many remain burned by the housing crash and don?t wish to own a home.
The most recent Rental Screening Solutions industry report released by TransUnion revealed that average rental costs have increased almost 4% countrywide last year while the credit risk of applicants for those properties as measured by TransUnion’s Resident Scoring Model has steadily improved, with an average improvement of 1% in the last year.
Even though purchasing a home is 35 p.c less expensive than leasing in the long run, an increasing percentage of US citizens are opting to sign a lease rather than a deed. Experts envision home ownership will fall even further in the following few years.
Purchasing isn’t the “American Dream” anymore. The North American Dream used to be equivalent in the American psyche with home ownership. Not so any longer. Today, the most well-liked definition of the American Dream is retiring with economic security, followed by being debt-free, according released in Sep by Credit.com. Just 18 % related that buying a home was the American dream.
According to Zillow data, home-ownership rates are envisioned to fall below 65% in 2014, the lowest level since the mid-1990s and a benefit to real estate investors who will see increased demand for their rental properties and continued increase in average leases and home prices.
These rising home costs will inspire Americans to move, but to more cost effective areas where housing is more affordable. Metropolitan areas like Atlanta, Dallas, Houston, Indianpolis and Kansas Town will continue to see a growth in residents and make great investment markets to build your tunkey real estate portfolio.
Click the link below to see the inforgraphic: http://www.noradarealestate.com/blog/welcome-to-the-rental-boom/.
Marco Santarelli is a speculator, writer and founding figure behind Norada Real-estate Investments — a nationwide real estate investment firm providing turnkey investment property in growth markets around the U.S.. For more articles like Welcome to the Rental Boom!, please feel free to visit our Property Investing Blog where it was at first printed.