The housing recovery rolls on, and the latest reports reveal some very interesting trends for renters. Here are some takeaway figures. Note that these statistics apply to the urban market only:
- 11.5% increase in list price since last year
- 21% decrease in homes on the market since last year
With this large drop in inventory (down 51.5% since 2010), home builders have had plenty of work – and this is where it gets interesting for renters.
The number of housing projects started has risen by 37%. Even as buyers flood the market, development has outpaced demand. The answer is that these new projects are being built overwhelmingly for renters without going on the market. The homeownership rate currently sits at 66%, as reported by the US Census Bureau, and it’s unlikely to increase any time soon (in fact it is trending downwards).
The National Association of Home Builders reported that over 208,000 multifamily homes were built in 2012. Much of this development is being fueled by the surge of young adults in the job market. The millenial generation of workers is one of the largest in US history, and is putting an enormous demand on the rental market.
High prices and low inventories are driving would-be buyers into the rental market, meaning that renters are the ones fueling the housing recovery. As these trends continue, we in the apartment community can expect a couple of things: More competition, younger rentees and of course, higher rents.
Make sure you’re prepared – follow our blog and contact us for all your rental inquiries.
