Investing in single-family Kapolei 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. For rental property investors, information is power. To start, here are four key facts you need to know about the 2022 rental estate market.
1. The national average rent increased by 36% in the last ten years.
Statistics show that in the last decade, the U.S. national average rent went up by 36%. These increases can be connected to various factors ranging from a change in renter demographics to a growing 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! 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 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%. Data like these confirm that recession years do not automatically mean falling property values.
3. More people than ever are renting instead of buying.
With the decade-long sustained growth, the renter population in the U.S. is now over 100 million. The number of renters has grown by more than 9 million people between 2010 and 2018. 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. For a nation with just under 44 million renters, there are only about 43 million rental homes. 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 Alliance (aka Honolulu) can help! Our expert team of Kapolei property managers works with investors to help find quality rental properties, assess the local market, and provide comprehensive property management services. Contact us at 808-427-0611 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.
