Earlier this week, my attention was drawn to a recent report produced by the Pew Research Centre that arguably reveals what a great time this is to invest in rental property.
Following an analysis of Census Bureau housing data, the Center deduced that there are more households being rented than any time for more than 50 years!
It appears that, despite the number of US households expanding by 7.6 million between 2006 and 2016, total households headed by owners stayed pretty much the same.
I think that we can fairly assume that at least part of the reason for this was the recession we all endured during that period.
Apparently the number of households renting increased from 31% to 36.6% over that decade, surpassing the 36% level seen in both 1986 and 1988 and very near to the 37% seen just over half a century ago in 1965. So this truly is an historic high.
It should be stressed, however, that what these figures don't suggest is any sort of reduction in interest in homeownership.
Pew Center research last year also revealed that no less than 72% of all renters want to eventually live in their own home.
This is further confirmation of what we already know through local market knowledge and a raft of other statistics on renting.
From an investment perspective, renting is quite obviously a sustained growth market, which sets up a superb opportunity for investors to either commence a rental property portfolio or to enhance an existing one.
It seems that every survey on renting suggests that the rental market is not only set to continue to flourish and that rental fees will continue to rise into the foreseeable future. While nothing is ever guaranteed to happen, it would take quite a sea change in current trends for this direction to significantly alter.
Given our rather unique set of real estate dynamics in this area, plus a very busy tech industry and constant new staff arrivals, rental options are especially attractive.
And as I noted in a recent blog, according to a United Van Lines survey, over 67% of moves into California are job related, so there's always a new and expanding pool of well qualified potential short and long term renters arriving here.
We have a wealth of experience in helping our clients acquire rental properties and developing a portfolio of them, so why not contact us today for an informal discussion of what options might work best for you in building a passive rental income stream.