If you’ve not been investing in rental property, both residential and multi-family, you might not want to read this article. If you have and are investing in more, this piece will give you some very warm retirement fuzzies. There were two reports released today and it provides more guidance as to the future of Good news for real estate investorshousing values, wealth accumulation and cash flow.


The first item of interest was reported by the real estate data firm S&P/Case-Shiller which gathers information regarding all things real estate. According to the report, home prices rose yet again for the month of May to the tune of 4.9% in the 20-most populous cities in the United States. And according to an analysis in today’s CNBC Real Estate Report* the rate of home price increase will likely stay in the four to five percent range, a moderate and manageable rate. Far from any home price bubble.

Second, home ownership rates have fallen to levels not seen in nearly 50 years. According to the U.S. Census Bureau, home ownership dropped to 63.4 percent in Q2 2015. Lyndon Baines Johnson was President back then and the United States was still two years away from landing the first man on the moon. The number was also very, very close to the historic low set in 1965. For real estate investors that’s some exciting news for two reasons.

Lower home ownership doesn’t mean there are fewer people but more renters. It’s the real estate investors that are reaping the benefits with higher home values. In the very same report, it was noted that rents and occupancies continue to climb for both one-to-four and multifamily units. That sound you hear in the background is the clink of celebratory champagne glasses.


*cnbc.com 07/28/2015