Temperatures around the U.S. may be cooling off, but the national rental market is doing the exact opposite. Just how hot is the U.S. rental market, you ask? The fact that two of the nation’s largest home builders, Toll Brothers and Lennar, are doubling down and investing hundreds of millions of dollars into their apartment development divisions indicates that it’s scalding hot.
Here are some more eyebrow-raising stats about the lucrative U.S. rental market:
- The national rental vacancy rate is currently 4.2%, around a 15-year low.
- The national median rent has risen to just under $1,200 a month, a 15-year high.
- Demographic trends – including Millennials leaving their parents’ homes and Baby Boomers downsizing to more manageable homes – indicates that demand for rental housing will only continue to increase.
See below to learn about three top-performing U.S. rental markets that are likely to soon become even more lucrative.
“Everywhere you turn, new rental apartment buildings are popping up left and right.” This how a local news station summarized Charlotte’s booming rental real estate market. The surge in rental housing supply has done nothing to bring down rents or increase vacancy rates; occupancy rates and rent growth in Charlotte remain notably stronger than historical norms, thanks largely to the city’s strong economy. See a list of Charlotte property managers >>
In addition to its perpetually warm and sunny weather, the affordability of Phoenix’s housing has long been one of its most attractive qualities. This is unlikely to change anytime soon; Phoenix was recently ranked the eighth most affordable large U.S. city, placing well above other large cities in the Western U.S. The local rental market has been much more favorable for rental property owners, however. Phoenix rents have risen well over five percent in the last year, considerably higher than the national average. See a list of Phoenix property managers >>
Population growth, momentum and demand. Those are the three reasons the San Antonio Business Journal recently cited as to why “the city’s residential market has accelerated at unprecedented speeds.” In fact, demand for San Antonio housing is growing so fast that concerns of overvaluation – a bubble – have been voiced.
Local real estate professionals are far from worried, however. “I haven’t seen any sign that a bubble is forming here, and as far as local real estate is concerned, we are very strong,” Mary Ann Jeffers, the chairman of the local board of Realtors, said about these fears. See a list of San Antonio property managers >>
Have you been able to cash in on the red-hot U.S. rental real estate market? If your rental income has remained stagnant in recent years, or has only increased slightly in spite of the nationwide surge in demand for rental housing, then you must act NOW to avoid leaving more money on the table.
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