Single-family homes now comprise 35% of all rentals and 11% of all households.
What's driving demand?
From 2005 to 2012, single-family rental homes grew 1.7% per year, primarily due to:
Low Confidence: Many households do not yet have the confidence to purchase, knowing that they could lose their job or be required to relocate.
Low Affordability: Many households cannot afford to purchase a home due to bad credit, loan documentation issues, high levels of debt, and home prices now being out of reach.
A lot of people ask, “When should I buy? What part of the real estate cycle should I buy in? Should I buy in a down market? Are the values going to keep going down? When should I buy and where is the cycle right now in my area?”
Before I break down the risks of investing, one of the most important things you need to look at is; what is the risk of not investing?
Incomes are dropping. And that’s not good for the real estate industry, nor is it good news for the American Dream of home-ownership. More Americans view themselves as slipping out of the middle class according to a recent survey by the Pew Research Center.