A recent study by the Wall Street Journal showed that one and five U.S. households with six figure incomes rented a home in 2019.
What Are The Facts?
About 19% of U.S. households with six-figure incomes rented homes in 2019, which is an increase of 12% since 2016. Research suggest, that over 3 million renters today would have probably been homeowners a generation ago. This raises concerns for some Americans who believe if more people forgo home ownership, the nation’s wealth gap will widen further, especially given the way most middle-class Americans accumulated wealth is by appreciation on their real estate.
Does More Renters Mean More Rental Homes?
Developers have rushed to build luxury apartment buildings around city centers, and investors have snapped up suburban homes to turn into rentals, with some building single-family homes specifically for this high-income rental demographic. Landlords have found that six-figure earners are more consistent rent payers, tend to stay longer, and are more willing to absorb regular rent increases to avoid moving their children to new schools, making them the preferable renter.
Thinking of Investing? Now Is the Time!
This is great news for investors and may be the perfect time to start looking for an investment property. Ryntal Property Management can help you find, purchase and manage your investment property! We will help you get the most out of your investment, find well qualified tenants with our background and credit checks, along with performing quarterly inspections to ensure your investment is being well maintained.