Shafiq Hirani CCIMReal Estate Advisor, REMAX Distinctive · Real Estate Advisor at RE/MAX Distinctive Commercial | Washington, DC | Your Guide To Profitable Real Estate Ventures

Why Renting Is YOUR New Reality (And How To Profit) #shorts

28 Jul 2026 · 2 min

Watch on YouTube

1:45

In this YouTube Short, Shafiq Hirani CCIM explains why the U.S. rental market is becoming the dominant housing reality and how investors can profit from it. He notes that multifamily construction starts jumped 17.2% year‑over‑year, signaling strong demand as buyers are priced out and builders shift to apartments. Consumer sentiment remains low (44.8 in May, modestly up to 54.4), keeping renters hesitant to buy. Inflation pressures are resurfacing: Brent crude is back near $87/barrel, gasoline near $4/gal, and upcoming CPI data are expected to rise. The NAHB warns that persistent ~3% inflation likely rules out any Federal Reserve rate cut in 2026, while new tariff measures add further cost pressure. For apartment owners, operating costs and refinance rates stay elevated, with mortgage rates around 6.8%, reinforcing the barrier to homeownership and bolstering rental demand.

Chapters

Meanwhile, multifamily starts jumped 17.2% year over year. That tells you exactly where the demand is flowing. When people cannot afford to buy, they rent. When builders cannot sell homes, they build apartments. The affordability crisis is not easing; it is deepening. And every month it continues, the demand floor under your apartment building gets stronger. One number I want you to remember. Consumer sentiment hit 44.8 in May, one of the lowest readings in years. It has recovered slightly to 54.4, but that is still fragile. People are not confident about the economy right now, and that uncertainty keeps them renting instead of buying. The inflation reprieve from June's CPI report is already under threat. Oil is back to around $87 a barrel for Brent crude after the Iran ceasefire collapsed. Gas prices are holding near $4 a gallon. July's inflation numbers, which will come out next month, are expected to climb again. The NAHB put it bluntly in their report this week: inflation remaining in the 3% range likely eliminates any hope of a Federal Reserve rate cut for 2026. On top of that, the administration is pursuing new tariff measures after the Supreme Court struck down the prior system, which adds another layer of cost pressure. For apartment owners, this means 2 things. Your operating costs, everything from materials to insurance to contractor pricing, are not coming down anytime soon, and your refinance rate stays elevated. Mortgage rates are sitting at 6.8%, which keeps the homeownership barrier firmly in place for your tenants.