With many Americans delaying homeownership – given low supply, high pricing and rising interest rates – that has in turn created a growing demand for rental housing. This is contributing to rising rents and presenting opportunity for investors to capitalize on the abundance of new renters, increased competition and demand that is outpacing supply, Larry Jacobson, president and CEO of The Jacobson Company, said in an interview with IREI.
Jacobson pointed to a new study commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA), which found the United Stats needs to build 4.3 million new apartment units by 2035 to keep up with this increasing demand. “Texas, Florida and California account for 40 percent of future demand and will require 1.5 million new apartments by 2035,” added by Jacobson.
But even with these positive demand trends, construction has been limited, which is likely to keep rental rates elevated.
