At the peak of the housing boom, homeownership in America reached an all-time high; 69.2%. Today that number has plummeted to fewer than 67%, which may not sound like a huge drop, but that represents roughly 3 million households that were owner-occupied and are now tenant-occupied. Home prices and sales may be flat, but the rental industry is booming. The percentage of renters is on the rise, the numbers of households are increasing and more Americans are downsizing, all of which point in a single direction: rents are on the rise!
The vacancy rate for for-rent condos, single-family homes, and other small properties in metro Denver fell from the second quarter of 2010 to a new second quarter low of 2.6 percent during 2011, the Colorado Division of Housing reported. The average number of days on the market for single-family rentals and similar properties fell from 47.2 days during the second quarter of 2010 to a new all-time low of 15.7 days during the second quarter of 2011. It’s anticipated that there will be a rental housing shortage in many major cities around the country over the next few years.
Each of these indicators are entire topics in themselves, but the bottom line is that the rental industry is on the rise and most real estate experts agree that its growth will accelerate rapidly over the next three to five years!
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