Are you considering the benefits of investing in rental properties, but concerned about a slowing real estate market?

Great news! Economic indicators are showing that the rental market has not only remained strong over the past several years, but will continue steady growth over the next decade.

According to a report released recently by the Joint Center for Housing Studies of Harvard University (JCHS), in any given year, some 34 million US households make their homes in rental housing. Their research shows that despite the dramatic rise in homeownership, the number of renter households has held steady over the past decade, and will begin to trend upward over the next decade.

"From a market perspective, rentals are starting to look a lot stronger than they have in the past few years," offers Rachel Drew of the JCHS.

What is fueling this growth in the rental market?

With real estate prices rising at record rates over the last year, and interest rates rising at the same time, many people are now finding it difficult to afford the high costs of homeownership. Others simply prefer the more flexible lifestyle that renting offers. From being able to live closer to work, to not being tied down with homeownership and the responsibilities that go along with it.

According to the JCHS continued immigration is another driving force in rental market growth. They report, "Over the coming decade, the continued strength of immigration and growth in the number of young minority households alone should keep rental demand on the rise."

James Smith, an economist at the University of North Carolina-Chapel Hill concurs. "Immigration will remain a source of strength for the rental market for another 15 years or more," Smith said. The U.S. is currently experiencing "the highest percentage of immigrants since the 1920s," he noted, and that has stimulated demand for rentals.

Current projections show the number of renter households increasing by more than 1.8 million by 2015. This increase is expected to fuel new construction growth, and increase rental rates, while at the same time reducing vacancy rates.