In a report provided by the U.S. Census Bureau in Washington, D.C. the number of rental properties that are inhabited by renters grew by 2 million last year. The number of available rental properties has fallen 7 percent in the fourth quarter; the lowest it has been since 1993. Since the job market has picked up more young people are about to leave their parent’s homes and start their lives. But the parents aren’t the only ones benefitting from their kids leaving the nest. Single-family homes and apartment landlords are now able to increase rents as demand rises and supply is slow to meet it.
According to the Census date, the rate of homeownership has dropped to the lowest point since 1994. Owner-occupied households have dropped by 354,000 a year earlier. The rate of ownership by people 35 and under is at the lowest it has been since 1982. The rate has fallen 35.3 percent, 1.5 percent just in the last year. The number of total households – 1.66 million – is the largest since 2005, according to Jed Kolko, the chief economist for Trulia Inc.
The vacancy rate for owner-occupied properties declined 0.2 percentage points to 1.9 percent. There was a $20.6 billion increase in 2014 as U.S. renters paid over $441 billion for houses and apartments. This is because fewer and fewer Americans owned their homes. And, landlords with limited inventory increased their prices, states the data provided by Zillow Inc.
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