The U.S. Census Bureau recently reported some interesting data for those of us in the real estate industry. Over the past 5 years, there has been a tremendous spike in the number of rental households, with folks making $150, 000 or more jumping by 87%. Over 44 million households are now renting with a median income approaching $71, 000.
The biggest increase was in Austin, Texas. Folks making $150, 000 or more who are renters increased 154% over the past 5 years. Many moved here and to other parts of the South and Southwest after the pandemic.
Why are they renting? Higher home prices and mortgage rates play a big factor. Some people can’t find what they want. And others just want to experience the lay of the land before they commit. The result is that rents will remain high and lower and middle income earners will be squeezed. Builders are targeting high earners with buildings that have pools, fire pits and huge fitness centers.
At some point, some of these folks will be ready to buy. If you have developments in your area that cater to these renters, you may want to make some of them your friend. When they are ready and you have an attractive property, you may have a cash buyer or someone you can come to terms with on an owner carry note. And, when YOU are ready to sell that note, we are here to buy it from you.