When studied at the micro level, the multifamily rent market seems to be in constant flux. It’s up. It’s down. It’s flat. It’s back up again. Inventory is high. Inventory is low.
But when you zoom out, you’ll see one constant: over time, rents go up. A lot.
Since the 1960’s, inflation-adjusted, year-over-year rent growth has outpaced real household incomes by more than three to one.
According to the most recent U.S. Census Bureau, “46% of American renters are now spending 30% or more of their income on housing.” Twenty-three percent “are spending at least 50% of their income this way.” This meets the Department of Housing and Urban Development’s definition of being “cost burdened.”
On top of everything, a lack of homes for sale and climbing mortgage rates are forcing many potential home buyers to choose apartment living.
What does it all mean for potential real estate investors? It means demand has never been higher for more affordable housing. If you want to capture one of history’s largest markets, offer renters better value.
With more than 30 years of experience in building multifamily housing faster, better and for less, Pacific West is built to satisfy that demand with the industry’s highest value offerings.