Americans who rented out properties gained $3.3 billion in total income from that endeavor during the month of May, up from $2.9 billion in April, according to the U.S. Bureau of Economic Analysis. The BEA’s latest report suggests predictions of a more rental-focused housing market are coming true. Earlier this year, John Burns Real Estate Consulting sounded the horn on the rental trend, saying he believes demand in top markets is going to grow dramatically, with some cities experiencing 25% growth over the course of the next three years. Burns said the likely renters are young adults who are living at home or with a friend to save money. When they’re ready to move on, he estimates there will be about 3.4 million units of pent-up demand for rental housing. A recent survey by credit bureau Transunion concluded that 47% of all property managers reported an increase in renters moving to apartments after experiencing a foreclosure. The same BEA report said personal income in May increased $36.2 billion, or 0.3%, from April. Meanwhile, wages and salaries increased $14.1 billion last month, but at a slower clip when considering disbursements in the same category grew $26.4 billion a month earlier. Write to: Kerri Panchuk.
About the Author
Kerri Ann Panchuk was the Online Editor of HousingWire.com, and regular contributor to HousingWire magazine. Kerri joined HousingWire as a Reporter in early 2011 and since earned a law degree from Southern Methodist University. She previously worked at the Dallas Business Journal.