American households have increasingly turned to the rental market for their housing needs. 31% of households rented their homes in 2004, compared to 35% in 2012 and 36% at the end of 2014.
Some factors to contribute to this increase, according to a study by the Joint Center for Housing studies of Harvard University, are:
- The enormous wave of foreclosures that displaced homeowners after 2008
- The recent economic turmoil raised the bar to qualify for homeownership
- High rates of sustained unemployment
- The market conditions during the last few years have made evident the risks of owning a home, such as the potential loss of wealth derived from falling home values and the potential personal and financial effects of foreclosure.
- Renters appreciate the ease of moving when renting versus owning
- Being free from responsibility for home maintenance is something valued by renters
According to the study, "the 2000s marked the strongest decade of growth in renter households over the past half-century". With these numbers in play, a great opportunity has been presented to investors of rental apartments. Make sure that as an investor, you protect yourself and your assets. Run a criminal background check of your prospective tenants whether you are in Florida or anywhere in the United States.