A Favorable Rental Climate of Both Circumstance and Choice
Approximately 80% of Baby Boomers favor renting over buying a home in 2024, according to Bank of America Institute.
Recent headlines add weight to a shifting narrative:
- “Renters Agree it’s a Bad Time to Buy” (Yield Pro, 7/9/24)
- “Homeownership Costs in US Jumped 26% Since Pandemic Began” (Bloomberg, 6/10/24)
- “High-Earning Americans Are Now More Likely to Rent Than Buy” (Robb Report, 6/1/24)
Adding to the story of the active rental market – where individuals and families are choosing rental housing for both financial and lifestyle reasons – is RealPage’s July 2024 forecast that suggests roughly 40% of the top 50 U.S. markets may see rent growth above 3% in 2025, with 55% of markets expecting 2-3% growth.
Capital Square’s Response to the Rental Climate Headlines:
As an owner, builder and manager of best-in-class rental housing properties that are in demand, Capital Square is well positioned to serve this historically high population of renters for years to come.
Over 40 of our multifamily communities across the Sun Belt are now managed by Capital Square Living, Capital Square’s property management division, establishing long-term value for investors from the property-level up. In-house property management maximizes revenue, increases operating efficiencies and reduces costs, while delivering best-in-class service. With Capital Square Living, we enable our residents to thrive, while our multifamily real estate portfolio also becomes even more exciting, fully leveraging the strength of our vertically integrated real estate firm.
Our growing number of build-for-rent (BFR) communities is also answering the elevated demand from renters who desire the space of a single-family home without the significant financial responsibility of home ownership. Thus, the benefits and flexibility of rental communities can now reach new populations seeking larger housing solutions, complete with a yard for their dogs.
The rent growth predictions for 2025 and beyond, when the next housing crisis on the horizon begins to arise, mean opportunities continue to reside in multifamily and BFR real estate investing.
At Capital Square, we’re ready for it, living our mission as we continue to raise capital, buildings and expectations. Contact us today to learn more.
