Renter Demand Continues to Increase and Benefit Investors

The demographic, financial, and lifestyle shifts of an increasing renter population in the United States continues to march on. This is of course great news for multi-family real estate investors, since renters are our customers who fuel our business.

SWBC Insurance Services recently released its report “The State of the Rental Housing Market: 2017 Home Rental Trend Report”. They hone in on some particularly interesting general trends that are worth knowing as you think of your future investing strategies. Some highlights:

• Percentage of renters (versus homeowners) is the highest it has been in over 50 years
• The fastest growing segment of renters is those earning over $100,000 per year (pointing to lifestyle choices, not just financial choices)
• Middle-aged renters (age 30–49) comprise 40% of new rental demand (renters historically tended to be predominantly younger)
• Renters are increasingly spending a higher percentage of their income on rent