Jason Hartman breaks down how homeownership is falling and pushing more people into rentals: each 1% drop in homeownership creates roughly one million new tenants. Apartment rents are softening from excess inventory, but single-family home rents are climbing faster and will keep accelerating.
They got to buy or rent or be homeless, so they're going to rent. And so every 1% drop in the homeownership rate equals about 1 million more tenants. Rents are going up, folks. They have temporarily decelerated a bit to, like, the pre pandemic levels. They're still rising, but not as much as they were before. And in the apartment market, which is suffering a lot because there was just too much inventory built and a lot of it hitting the market at the same time, rents are definitely softening in apartment complexes, but not single family homes. Okay. And I say, say the rents in single family homes are going up a lot more than they are today.
