Considering an additional investment property? Here’s some key data to help you decide.
As a rental property investor, the key to building real wealth with your investments is to buy multiple properties. But you may have questions, including whether now is the right time for you to buy or whether you really need another investment property. While every investor’s situation is different, one of the best ways to find the answers to these questions is to look at some of the key data coming out of the single-family rental market. In this way, you can more confidently make decisions about expanding your investment portfolio and strategy.
Demand is at an All-Time High
Demand for single-family rentals homes is currently at an all-time high. Although traditionally viewed as a less profitable asset type, that is no longer the case. Single-family rental homes are the most sought-after property types, both for their solid equity growth and their potential for higher rental income. As rents continue to rise in markets across the country, that demand shows no signs of weakening. As more investors recognize the benefits of owning single-family rentals, the market will only become more competitive in the near future.
More Single-Family Homes are Rentals
According to recent data, single-family rental homes account for more than 1/3 of all the rental units in the nation. Fifty years ago, only about 21% of American households were renting – including apartments, homes, and other types of rentals. But renter demographics have changed significantly since then. More than in the past, renters are looking to rent homes with space: multiple bedrooms and bathrooms, storage space, and a yard. This desire for space, combined with an increased emphasis on working from home, has led to a surge in demand for single-family rental houses in markets across the country.
Investing in Property Management
Another shift in the rental market relates to the development of property management strategies geared toward investors. The days of the do-it-yourself landlord and property owner have long passed, especially for rental property investors looking to grow an investment portfolio. To build real wealth, maximize rental income, and meet ambitious investing goals, investors need the resources and expertise that only a professional property manager can offer.
Currently, Real Property Management manages 0.3% of all single-family rental homes in the country – a significant share of the national rental market. We differentiate ourselves from the competition in many ways, but for investors, in particular, we strive to work closely with them to ensure they get the highest possible return on each property. With all of the key indicators pointing to strong growth in both demand for rentals and demand for quality property management, there might never be a better time for an additional investment property.