Fascinating real estate facts & stats.Knowing your data is essential to comprehend your market and sector, just like assessing a property.
Gaining knowledge about real estate facts and data will assist you in recognizing changes in your local markets and determining which areas, homes, and characteristics would be best for your investment.
The favorable tidings? Strong signals for a robust and expanding US rental market are provided by low inventory, high student loan debt, and the Millennial generation, which is constantly expanding.
You’ll also learn the locations of some of the most promising local markets and some of the details you need to know to assess property managers in those places.
1. Real estate investing facts
- In 2007, around two-thirds of investors were primarily focused on the stock market. That number has fallen to 50%, with many Millennials choosing to invest in real estate instead.
- Sales of vacation homes skyrocketed during the pandemic, with sales outpacing the growth of existing home sales by nearly 300%.
- The average nightly rental rate in the US for short-term rentals is $202.50 per night, with 60% of stays seven days or longer.
- The short-term rental market was valued at $87 billion in revenue in 20196. It is expected to have a compound annual growth rate (CAGR) of 3.4% over the next 5 years.
- Zillow predicts home prices will increase by double-digits in 2022, driven by a perfect storm of pandemic factors, demographics, and demand vs. supply.
- Between March and September 2021, virtually all of the nation’s 100 largest cities saw rapid and uninterrupted rent growth.
- Individual real estate investors account for 72.5% of rental properties in the United States.
2. Real estate pricing facts
- The US Median home price for November 2021 is $353,900, with nearly 6.5 million housing units sold over the past year.
- Construction of entry-level homes below 1,400 square feet has consistently declined as a percentage of new construction since 1980. By 2020, the percentage of smaller starter-home construction dropped to about 7% of total construction.
- Industry experts mostly agree that 30-year interest rates on fixed-rate mortgages could reach the high 3% to low 4% range by the end of this year.
3. Real estate buyer and seller facts
- Nearly two-thirds of millennials have homebuyer regrets, with high maintenance costs listed as the biggest home-buying regret.
- The majority of Gen Z and millennials with kids in school now want homes with large yards, while Gen Zs without kids want to live in detached homes.
- For Sale by Owner, properties accounted for 7% of home sales in 2020.
- The median days on the market before an offer was accepted was 27.5 in 2021.
- Student loans represent $1.7 trillion in debt, negatively impacting the ability of younger, college-educated adults to buy homes.
- 17.6 million US homeowners spend more than half of their income on rent.
4. Real estate rental facts
- Investment capital is pivoting from multifamily into single-family build-to-rent communities to create housing for people who are renters by choice.
- Over 44 million housing units in the US are renter-occupied, with 41% of renters living in single-family homes.
5. Real estate market facts
- According to a study by U.S. News & World Report, the best places to live for families are Huntsville, Ann Arbor, and Fayetteville based on key metrics including affordability, quality of life, and the job market.
- WalletHub ranks Chesapeake VA, Gilbert AZ, and Lincoln NE as the best places for first-time home buyers out of 300 cities of varying sizes.
- Austin, Dallas-Fort Worth, and Des Moines were the 3 most popular markets for millennials during the pandemic.
- Lawton, Oklahoma is ranked as the cheapest city for renters in 2021 by Apartmentguide.
6. Property management facts
- In 2020, US property management accounted for about $88.4 billion in revenue in North America, an increase of nearly 8% over the past 12 months.
- The most common property management services are maintenance and repairs, rent and fee collection, leasing and advertising, property inspections, and evictions.
- The US market for smart home products grew by 9.5% in the 3rd quarter of 2021, with devices such as home monitoring and security, smart speakers, lighting, and smart thermostats seeing some of the greatest demand.
- Smart technology, pet accommodations, privacy, and accessibility are 4 amenities that drive rentals and ROI.
- According to HomeUnion, 9 must-haves for a successful single-family rental property are:
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Good location
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New smell and feel
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Parking
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Central air conditioning
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Laundry
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Storage space
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Outside space
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Safety
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Pet friendly
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