Norada Real Estate Investments

  •  Home 
  • Markets
  • Properties
  • Notes
  • Membership
  • Podcast
  • Learn
  • About
  • Contact

Rental Growth Where You Least Expect It

July 26, 2015 by Marco Santarelli

Take a drive through the urban portion of any major city and you will likely see cranes and construction crews dotting the landscape, building what appears to be an endless supply of apartment units.  Your eyes are not deceiving you.  Construction in 24 of the top 27 apartment markets in the country has eclipsed 24-year historical averages.

Given the declining national homeownership rate and numerous headwinds preventing entry-level buyers from owning a home, one could quickly assume that apartments are now the primary as well as preferred rental choice.  This assumption would be incorrect, however, as single-family rental homes are growing faster than apartments.  Consider the following:

  • 11.3% of all housing units are single-family rental homes (~1 out of every 9 homes).
  • The number of single-family rental homes has increased 35% since 2006, to 15.1 million from 11.2 million in 2006.
  • Since 2006, 3.9 million single-family homes have become rental properties, compared to 2.9 million newly created apartment units.

Rental Growth Where You Least Expect It

While we expect the rate of single-family rental growth to slow as foreclosures slow, we believe professional operators have a huge opportunity to build an investment-quality income stream out of what used to primarily be a mom and pop business.

Editor's Note:  Single-family homes will likely remains one of the best investment options for real estate investors at any level over the next 5-10 years because of demographic shifts and increasing demand.

Filed Under: Economy, Growth Markets, Housing Market, Real Estate Investing

About Marco Santarelli

Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments – a nationwide provider of turnkey cash-flow investment property.  His mission is to help 1 million people create wealth and passive income and put them on the path to financial freedom with real estate.  He’s also the host of the top-rated podcast – Passive Real Estate Investing.

Real Estate

Quick Links

Blog Posts

  • Houston Real Estate Market: Prices | Trends | Forecast 2021
    February 25, 2021Marco Santarelli
  • Sacramento Real Estate Market And Investment Overview
    February 24, 2021Marco Santarelli
  • New York Real Estate Market: Prices | Trends | Forecast 2021
    February 23, 2021Marco Santarelli

Contact

Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

(949) 218-6668
(800) 611-3060
  • Terms of Use
  • |
  • Privacy Policy
  • |
  • Testimonials
  • |
  • Suggestions?
  • |
  • Home

Copyright 2018 Norada Real Estate Investments