Since the housing crash in 2008, the
number of renting households has soared. Within the next decade, 5 to 6
million new renter households are expected to be formed, according to
the National Association of REALTORS®.
Much of that increase may occur in the next two years. Within that
time, the U.S. Census Bureau predicts that renter households will grow
from 38 million to 41 million.
"In general, across the country there are more renters now than there
were two or three years ago," says Wally Charnoff, CEO of RentRange.
Property management companies are booming, too. Officials with Real
Property Management say the company has doubled in size over the past
two years. The company has 230 offices in 47 states and adds an average
of eight new franchises per month.
"Profound changes in the housing market have created significant
demand for property management companies like ours," Kirk McGary, CEO of
Real Property Management, told HousingWire. "And it doesn't look like
that's changing anytime soon."
Charnoff adds that location may be a big driver for renters. With a
shortage of for-sale homes nowadays, some families are being driven to
rent in order to be able to live in a specific neighborhood with good
schools, he notes. “Institutional investors have provided a lot of
readily available property,” he says.
However, he adds that rising mortgage rates may prompt more
on-the-fence renters to jump into home ownership before housing
affordability moves lower.
Source: “Are renters here to stay? Spoiler alert: Experts say yes,” HousingWire (June 12, 2013)