The renter population is expected to grow significantly from now through 2041. This growth is largely attributable to a shifting workforce/ popularity of remote work and travel, lack of inventory for purchasing homes, more demand to live alone, and barriers and increasing costs to homeownership. The coronavirus and the higher unemployment rate have impacted the rental market and made renting an attractive option for people who are unsure about their finances.
A recent report by the National Association of Realtors (NAR) said that renter search demand is up significantly. NAR’s renter demographics might be skewed toward frustrated and resigned home buyers, but it shows rentals are highly sought. The National Multifamily Housing Council (NMHC) estimates that there will be 10 million more renters by 2025. This growth will be driven by the increasing number of millennials who are renting, as well as the growing number of older adults who are renting. The NMHC also estimates that the demand for multifamily housing will outstrip supply by 2025, which will lead to higher rents.
As of March 2023, apartment demand in the Southeast is at 96.3%. This is higher than the national average of 95.5%. The Southeast is a popular region for renters due to its warm climate, strong economy, and growing population. Rent growth also remained strong with prices increasing 6.2% in January 2023. When compared to more historical performances, the apartment market’s recent rent growth is solid. Additionally, the annual price increases have averaged 3.4% for 36 consecutive quarters.