TransUnion Graphic Shows Good Things for Landlords
TransUnion, one of the big three credit scoring companies, released a very telling infographic about the United States rental market. While half of this graphic is veiled advertising for TransUnion’s SmartMove, my investor clients and potential investors should still find this all very interesting.
What facts stick out?
1. Renter households increased by 9,000,000 households from 2005-2015.
2. Only 13.8% of renters can afford to buy a home in their market.
3. The national rental growth rate is 4.7%.
4. Homeownership rates are at a 50-year low.
5. Home prices rose 5.4% since June 2015.
Homeownership rates are at historic lows. Landlords are enjoying increasing demand from a captive audience, as renters generally cannot afford to buy their own home. Rising home prices make these trends likely to continue.
Is it time to consider adding passive income to your portfolio? I’ve been involved with rental properties for years and own and self-manage my own 54-unit apartment building. Want to talk about rental properties without hearing the garbage peddled by late-night infomercial hucksters? I will tell you about the good, the bad, and the outright ugly. We can even tour my building together if you’re curious. Rental properties are not for everybody, but too many people dismiss them without really learning more about the opportunity.