The National Multifamily Housing Council and the National Apartment Association released a report that estimated the required number of new apartments across several cities in the US by 2030, as demand continues to outpace supply.
The report also detailed the challenges that rental property investment projects are likely to face in the future. Currently, homebuyers and renters seem to have a hard time looking for existing homes almost anywhere in the country. Even Americas Housing Alliance, LLC witnesses the shortage and sees the potential in real estate investing a few years from now.
The report particularly stated the required number of apartments with at least five units for each major city. New York, for instance, may have deployed 212,000 units between 2000 and 2015. However, real estate companies in the city will need to add more to meet an estimated demand of more than 250,000 units by 2030.
On the other hand, Dallas needs to ramp up the pace of construction for new apartments. It only added 144,000 rental units between 2000 and 2015, yet the report predicted that demand for units in the city would be slightly less than the required number in New York.
In terms of leasing prices, those renting one-bedroom properties in San Francisco apparently pay one of the highest fees in the US at a median price of $3,284 per month. The same rental unit in New York and Los Angeles will cost $2,823 and $2,075, respectively.
Those looking for cheaper rentals in cities should consider Detroit, where median prices amount to $525. Rents in Indianapolis and Milwaukee are also affordable at median prices worth $695 and $824, respectively.
By 2030, do you expect to own a house, rent an apartment, or become a real estate investor? As the demand grows, take note that competition for buying or leasing properties will be greater if property developers are unable to increase their inventory.