Why a Market Crash Is Unlikely

We've got 3 real estate statistics that are sure to change your thinking about real estate investing. Let's get started, huh?

1. U.S. rental vacancies have been on the decline since the Great Recession. According to Statista, rental vacancies have been well and steadily shrinking since around 2009-2011 – on the heels of the Great Recession. What this points to is over a decade of sustained and growing renal demand. It shouldn’t surprise anyone that the Great Recession seemed to trigger this trend, as it made many weary of the risks and challenges of homeownership.

2. The share of renter-occupied housing units has grown steadily since the 1970s. It would be a mistake, however, to conclude that rental popularity is new. Renter-occupied housing has been increasing for decades! At the same time, overall housing vacancy is down. What this tells us is that rental properties are increasingly popular, but it’s tight inventory and market conditions – not necessarily preference – that informed the trend, at least in the past. These days, though, we know that rentership is often preferable to homeownership.

3. Single-family rent prices increased by 37% between May 2021 and 2022. SFR rent prices outpaced multifamily rent growth – 37% versus 6.5% for apartments. That’s five times the growth. If this demonstrates anything, it shows the growing preference for and competition within the SFR housing sector. This price growth is good, too, as it helps investors meet their profit margins considering rising real estate costs.