Rental Market Benefits from Two Pieces of News
The past weeks have provided some news that could lift the outlook of Macomb County landlords and those who’ve been thinking about rental real estate as an investment. The reports surfaced from statistics compiled by the Census Bureau and by rentcafe.com—an internet company that tracks the current U.S. rental market. Both pieces of information shed light on the makeup of the renter population. It’s broadening in ways that can’t help but boost the prospects for the rental market as a whole.
The first encouraging information was last month’s finding that the percentage of high-income households opting to become renters increased 175% over the past decade. The number of households earning $150,000 or more who decided to become renters swelled by 1,350,000.
The statistics were culled from Census Bureau data for the years between 2007 and 2017. It confirmed that the segment of the renter population consisting of top earners was growing at a faster clip than any other income bracket. Theories to explain the trend ranged from the lifestyle preferences of newly prosperous millennials to echoes of the post housing crisis mentality. Whatever the reason, it should come as welcome trend for Macomb County landlords whose investments are in higher-end rental properties.
Added to this came last week’s finding that the same decade saw another increase—this time in the number of older residents who are renting their homes. Although the market is still dominated by renters in their 20s and early 30s, the number of renter households aged 60 and older grew disproportionately. According to rentcafe.com, that segment “jumped from 6.5 million to 9.4 million”—an increase of 43%. Real estate trade journal Inman News characterized the number of older renters as “skyrocketing.”
The combined findings add evidence to the broadening popularity of renting across all age ranges and income groups. For Macomb County investors weighing the merits of diversifying their portfolios by adding rental properties, it came as further indication of a market that looks to be gathering steam. If you would like to investigate some local properties that could benefit from the trend, I hope you will give me a call!