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A Stunning $441 Billion Paid in Rent

By
Real Estate Agent with Long & Foster Real Estate, Inc.

Rent PaymentsA recently released study revealed that a whopping $441 Billion was spent on rents in the U.S. in 2014. This represents an increase of over $20 Billion from the year before. As shown on the chart below, rents have increased consistently over the last 20+ years. However, the recent increases have been astounding.

Why such a jump?
Many Millennials have postponed the purchase of their first home while waiting for the economy to recover. This has increased demand and dramatically lowered vacancy rates.

Median Asking RentIn a recent article on the MarketWatch, economics reporter Ruth Mantell explains:
“Landlords have ramped up rents by the fastest pace in six years, with national vacancy rates the lowest in two decades.”
Zillow Chief Economist Stan Humphries let us know that increases will continue:
“Another increase in total rent paid similar to that seen this year isn’t out of the question. In fact, it’s probable.”

Regards, Gretchen

Posted by

Gretchen Conley, Realtor®  "Your Transition Specialist" 

Keller Williams Realty Centre   *   Cell 443-676-1625

Questions about the neighborhood, the community, the market?  I'm always happy to help - Give me a call!

About the Author...This article  was provided by Gretchen Conley, a Nationally recognized Realtor, Certified Residential Specialist, and Certified Short Sale & Distressed Property Specialist.  Gretchen can be reached via e-mail at Gretchen@GretchenConley.com by cell phone or text message at 443-676-1625. Gretchen has helped many people buy and sell their home.  For Maryland real estate and homes see www.GretchenConley.com.   If you need to Short Sale your Maryland home please contact me for more information.

Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

 

    Hi,,  what an opportunity for buyers in your area.   Thanks for sharing with us in AR Land.

 

Apr 29, 2015 05:05 AM
Tamra Lee Ulmer
Arizona Resource Realty - Payson, AZ
NRBA ~FORCE~ Over 1000 REO Assets SOLD!

Gretchen, I appreciate this fascinating report. The figures are just staggering but it really sheds light on where we really stand in the economy. Thanks for sharing!

Apr 29, 2015 05:05 AM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Gretchen - It is amazing how much rent is paid each year. I would imagine that some of these tenants could qualify for a home loan and don't even realize it.

Apr 29, 2015 09:16 AM