Economic data recently released proves that America is indeed becoming a renter nation.

The U.S. Bureau of Economic Analysis reports that in the first quarter of 2016 4.4% of U.S. household earnings came from investment related property, which is an historical high. To put that into perspective, rental profit as a share of household income was a miniscule 0.7% in 1986, and only 1.5% in 2007. (See also: see Rental Properties: 4 Ways To Value A Real Estate Property.)

The factors that have led to this bump in rental income include the nationwide rise of apartment occupancy rates which help to keep property net income up, record-low interest rates which make financing properties cheap, and a rental housing shortage that keeps rental prices high. Moreover, average rents have increased faster than the rate of inflation. As reported by Bloomberg, the cost of renting a home grew by as much as 3.5% in the first six months of the year. (See also: 3 Ways Millennials Can Invest in Rental Properties.)

According to the U.S. Census Bureau, the first quarter of 2016 also saw American homeownership fall to 63.5%. During the same quarter in 2005, that number was a little more than 69%. If this downward trend continues, it seems logical to conclude that rental demand will increase, and the value of rental properties will continue to increase.

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