As finding and actually financing a home becomes more and more difficult for the average person in today’s market, it seems like a no brainer that renting an apartment is a much more economical option.
According to a report done by RENTCafe, “renter households now make up the majority in 42 of the 100 largest cities in the U.S.,” which is to show that renting is the most reasonable option for many within the U.S..
The number of homeowners is reportedly at similar levels seen in 1980s and 90s, which is great news for those who are involved in the multifamily sector. Less and less are financially capable of purchasing a home in today’s market that renting is the only viable option, creating a high demand for more and more multifamily buildings to be built.
The rate of homeownership is likely to remain at this level, especially after the newest changes to the tax code which favors renters over buyers. After RENTcafe conducted a study over the last 10 years, they found that rentership outpaced homeownership in 97 of the 100 most populous cities. Which translates to roughly 23 million new renters compared to the less than 700,000 new homeowners in that timespan.
If you’re a commercial real estate investor, now is the time to expand your portfolio and invest in multifamily properties. As home prices continue to increase and homeownership becomes more difficult for individuals and families to pursue, renting an apartment is the only reasonable solution given the current market.
For an in-depth analysis of the multifamily market compared to the residential market, check out National Real Estate Investor’s article, “Apartment Renters Continue to Dominate Many of the Nation’s Cities.”