Did you know there are 42.9 million renters in the United States?
From young adults just starting out to seniors on a fixed income, people choose to rent their living spaces. It’s often considered a more affordable option than homeownership. In fact, the US rental market has been booming for about the last ten years.
So what’s driving the rental boom? And what does it mean for would-be and current renters?
We’ll break it all down for you here.
Competition for Apartments Tightens
Competition for apartment search is fierce, and prices are climbing. This is especially true in larger cities, where the demand for rental properties and units is high and the supply is relatively low. This competition is driving up prices and making it difficult for many people to find an affordable and first investment property.
People are being priced out of their neighborhoods and forced to move to cheaper areas.
Inexpensive Apartments Going Fast
The current US rental market is tight, with inexpensive apartments for rent going fast. This is especially true in larger metropolitan areas, where the demand for rental units is high and the vacancy rate is low. The result is that rental prices are rising, and landlords are selective in choosing tenants.
Those who are able to find apartments may have to compete with other renters for the unit.
Luxury Rentals on the Rise
The US rental market is booming thanks to the rise in luxury rentals. These high-end apartments and homes are in high demand, and landlords are ready to command top dollar for their properties.
Some renters are pleased to pay premium prices for the chance to live in a luxurious home, and this has led to a surge in the construction of new luxury rentals.
Rent Prices Continue to Increase
As rental prices continue to increase, many Americans are finding it difficult to keep up with the demand. The current rental market is tight, with few units available and high prices. This has led to an increase in the number of people who are homeless or living in poverty.
The situation is especially dire in large cities, where the cost of living is already high.
Lack of Affordable Housing
The lack of affordable housing is a major issue facing renters across the country, as the cost of living continues to rise. In many major cities, the average rent for a one-bedroom apartment is now over $1,000 per month. This is an unaffordable price for many people, and the problem is only getting worse.
There is a critical need for more affordable housing options, but the current market conditions make it difficult for renters to find safe and affordable places to live.
Knowing Rental Market Current Status
As the baby boomer population continues to age, the current rental market is expected to grow stronger. More and more people are finding themselves in need of a place to rent, whether it be for temporary or long-term purposes. The current rental market provides a great opportunity for those looking to invest in property.
With the right location and price, investors can expect to see a healthy return on their investment.
If you’re interested in learning more about the rental market or other topics, check out other content on our site.