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