Rental households comprise 34% of the housing stock and are growing
at the incredible rate of 1.6 million per year, while owned households
are actually declining in number, according to John Burns Real Estate Consulting, which called the increase an “incredible surge” in demand.
Only 20% of renters live in large buildings of 20 or more units, and
the remaining 80% of renters live in alternative types of housing.
The single-family rental business, which is already larger than the
institutional apartment business, is booming. About 55% of new renters
are leasing single-family homes, while the remaining 45% are renting
apartments. Never before seen levels of distressed home sales, which sit
at the lowest home price/rent ratios in decades, are driving the boom,
the consultancy said.
Burns said intelligent investors should take advantage of the “temporary disconnect in the market.”
Eventually, most of these renters will become homeowners.