Since the collapse in the housing market almost 10 years ago, we’ve seen a steady increase in the demand for rental properties. Here are some startling facts:
- In this time frame, the number of rental units has soared from 34 million to 43 million, in 2015. By 2025, it’s expected to top 46 million.
- The largest percent of that growth — 80%! — has come from the conversion of single family homes into rental properties.
- Demand has grown in all income ranges, but particularly in households earning less than $100,000/year.
- Because of the rising demand, rents are going up, while incomes are not keeping up. Renters are spending a larger percentage of their take-home pay toward their rent payments than ever before. But even so, we’re expecting continued growth in our rental markets throughout the US.
With no end in sight for the continuing demand on rental properties, investors are diversifying their portfolios and putting their monies in real estate. Indianapolis is a very desirable rental market; our economy is growing, yet our prices are reasonable compared to the rest of the country. We have investors from all over the world who’ve decided this is the place to be … especially in the low/middle income markets, there are still great returns to be made.
Onward and upward!