Rental trends are on the rise throughout the country, but it isn’t just in the big metros with luxury apartments. According to a recent article in the Wall Street Journal, over 22 million more people are renting in 2014 as compared to 2006. That breaks down to an increase of roughly 9 million people in the metros and 12 million people in the suburbs.
“The story really is that the pressure in the market is growing. It may have started in the cities, but it’s moving further out,” said Laura Bailey, managing vice president of community finance at Capital One.
As the price of rent increases in big cities many people are choosing to move to the suburbs. This means affordable rents for single family rentals with more space than luxury metro apartments, and usually a lower cost of living. While homeownership trends continue to trend lower, it is likely that rents in the suburbs will also increase in the future.
What this Means for Investors
While markets across the country are already presenting strong buy signals for real estate investors, there is also a huge demand for rental properties. In strategic markets, especially those near metros, single family rentals are on a fast track for growth through increased rents and appreciation.
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