When homes are as expensive to buy as they are right now, rental rates go up. Across the nation, many people who could buy are choosing to rent instead, and many others are renting because buying is simply out of the question. For a plethora of reasons, renters currently make up a huge portion of the housing market, and their share is only going up.
As rent prices are going up, home prices are going up, too, creating an ideal situation for buy and hold investors. For the uninitiated, buy and hold real estate refers to the process of buying a home or apartment building, renting it out for a few years, and then reselling the property at a time when the market is peaking. This allows investors to make both monthly income from renters and a nice profit on the backend when they resell their rental property.
If you’re considering buy and hold investing, here are a few statistics from the Rental Protection Agency (as of March 21) that should interest you:
- More than 111,000,000 people in the United States are renters. That’s more than a third of the entire population.
- The rental rate is increasing. Every day 2,654 people become new renters.
- The largest portion of renters are aged 25-34 years old. 27.9% of renters fall into this category. The next largest category is 35-44 year olds (22.7%), but there are also a fair number of people over the age of 65 who go back to renting in their retirement (13.6%).
- In every US state, at least 25% of residents rent. The lowest rental rate is in Minnesota (25.45%) and the highest is in New York (47.01%). California and Hawaii aren’t far behind (43.09% and 43.49%, respectively). In the District of Columbia, 59.24% of residents rent.
Renters make up an important part of the real estate market. In both houses and apartments, renters make homes for themselves for the short term and for the long term. With the right buy and hold loans, investors can provide a beautiful home for a young professional, a family, or a retiree while earning monthly income and enjoying excellent tax breaks as a landlord. To learn more, contact the team at ZINC Financial by calling (559) 326-2509.