According to a recent article by Pew Research, in 2016 the number of U.S. households being rented rose to 36.6%, the highest rate in 50 years. With a rising millennial population, experts are estimating that this trend is going to continue to grow. Let's take a glimpse at the future of the renting market in particular amongst major cities like Memphis, Tennessee and how it has never been a better time to invest in property in the area.
Amongst the top 50 metropolitan cities in the U.S., 29 were populated by a majority of renters (over 50%) in 2016. This was a steep rise from just 16 cities a decade prior. Memphis residents, in particular, are comprised of 56% renters, the highest percentage in the country.
Millennials, in particular, are a strong demographic within the multi-family housing industry. According to Pew Research, 65% of households headed by adults under the age of 35 are renting. They tend to want to live within the urban sprawl and are also the most likely demographic to want to change cities. Many millennials are hesitating to plant their roots somewhere. Cities like Memphis that boast lower rent, draw millennials as well as "empty nesters," aiming to downsize in order to get out more and travel. Memphis is becoming an attractive alternative to Nashville which has a much higher average rent price.
Basically, all of these factors sediment the valuable role the multi-family housing industry plays within our society. More properties are being constructed to accommodate this trend within every major city. As the millennial demographic continues to steadily increase, their busy and urban lifestyles will too become more prevalent. Whether it is by choice, or they have no choice but to rent for longer, the percentage of renters are going to continue to grow in major cities like Memphis with a low average rent and proximity close to other major cities.
Now is a great time to invest in such properties and cities. Regardless of whether the property values continue to increase, or crash once again, residents will always look to rental housing as an alternative to owning property. That is one thing that will remain constant. For more information about investing in properties within the Memphis area, contact us at Reedy & Company Realtors, LLC by visiting our website https://www.reedyandcompany.net/.