Numbers released by the U.S. Census Bureau highlight a couple of stats that indicate rents should continue to be on the rise as home ownership rates fall. What sticks out in the report is the rate of home ownership for those under the age of 35. That particular age group contains the bulk of first timerental demand to increase home buyers. First time home buyers are needed in order for those wanting to sell their existing home and move up to their second.

The home ownership rate for 35 and under hit 35.9 percent for Q2 2014. That represents the lowest level since the Census began tracking such numbers, all the way back to 1982, more than 30 years ago. Just 10 years ago that same demographic made up more than 43 percent of home owners. The dearth of first timers could slow down home sales overall but those same people need a place to live so they rent.

Those fresh out of college or secondary education who enter the workforce will typically rent at first. First timers need to save money for a down payment and closing costs, establish a solid credit and employment history. Getting approved for a mortgage loan is more difficult today than it was 10 years ago due to a return to sensible underwriting but those graduating from college may find their student debt load is keeping them away from qualifying for a mortgage. College tuition and living expenses have risen significantly over the years for both private and public universities and some students find no other way to pay for their education without borrowing.

Yet it’s the borrowing along with tighter loan standards that are keeping first time home buyers on the sidelines for now increasing the amount of those seeking rental homes. For the real estate investor that buys and holds for the long term, that’s very good news.