Zillow recently shared that last year there were 43 million renter households who spent an incredible $535 billion on rent. That’s a lot of money. According to a recent Wall Street Journal article, rent costs are rising at a rate we haven’t seen since 2007; and the rise shows no signs of slowing down. With annual increases like that, it’s no surprise more and more people are becoming homeowners.
“Another report from Axiometrics Inc., a Dallas-based apartment research company, showed that rents increased 4.7% in the fourth quarter compared with the same quarter a year earlier, the strongest year-end performance since 2005”.
Here is a graph to illustrate the rate of increase over the last several years:
Simplifying the Market