If you’re in the market for investment properties, now may be the time to pull that trigger. According to a recent Wall Street Journal article by Laura Kusisto, as homeownership rates continue to slow, rentals are picking up speed.
Kusisto looks at an analysis of the American Community Survey done by Jed Kolko that shows the degree to which renting is on the rise–and homeownership is on the decline.
The homeownership rate fell to 63.1% last year, down from 63.5% in 2013. But the single-family rental market–an asset class still coming into its own–really spiked in popularity. The amount of households renting a single-family home grew by 2.1% in 2014 year-over-year, compared to 1.8% growth on the conventional multifamily rental side.
The number of occupied single-family rental units grew 34% from 2006 to 2014, compared to a slight decline in the number of single-family owned units. Even the hot multifamily rental market lagged in comparison to single-family rentals, with just a 12% growth in the number of units.
“The rise of single-family rentals looked like a recession response to lots of people losing their homes….It turns out that this trend continues,” Mr. Kolko said.
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