At our free U.S. real estate classes recently there has been a lot of discussion about the right strategy in today’s market. Should a new investor in U.S. real estate buy for the short term or long term? Buy and flip or buy and rent?
While everyone’s goals are different this seems to be a very good time to hold and rent. Statistics from the U.S. government, the real estate industry and a huge number of industry professionals indicate that the rental market is booming and doesn’t show any signs of decline any time soon.
From Inman.com today, “Home prices and sales may be flat, but the rental industry is booming. The percentage of renters is on the rise, the number of households is increasing, and more Americans are downsizing, all of which point in a single direction: rents are on the rise.”
And from Reis Inc., which tracks nationwide residency data, “Rental vacancy rates are sharply on the decline as well. In the first quarter of 2011, rental vacancy rates had dropped to 6.2 percent. This figure is down sharply from the 8 percent vacancy rate just one year earlier.”
What a great combination that is. More people wanting to rent. Fewer available rentals.
All good for Canadians looking to invest in U.S. real estate.