Episode 68: America’s Rental Housing 2024 Report by Harvard Joint Center for Housing Studies
Summary
In business, you must know your numbers. Dollars, data, trends, and almost everything comes back down to the numbers. In today's episode, I review with you the 2024 Report about America's Rental Housing by Harvard's Joint Center for Housing Studies. We talk about the conclusions of the study and how it impacts you in your local area.
Listen to full episode :
Resources for today’s Episode:
AMERICA’S RENTAL HOUSING JOINT CENTER FOR HOUSING STUDIES OF HARVARD UNIVERSITY
This week’s blog post:
Hey there, I'm Dr. Jen, and today, we're diving into the insightful world of rental housing with the Harvard Joint Center for Housing Studies' American Rental Housing 2024 report. This report sheds light on the current state and future projections of rental housing in the U.S., and I'm here to break it down for you, landlord-style.
The Study at a Glance
What's the Deal?
The study, spanning 52 pages across seven sections, offers an annual snapshot of the rental housing landscape, adapting its focus based on market conditions. From renter demographics to housing affordability challenges, the report covers it all, including additional online resources for an even deeper dive.
Key Takeaways
Demands and Disappearances
High Demand: Starter and downsizer homes are in high demand, alongside affordable housing for low to medium income earners.
Vanishing Units: Over the last decade, we've lost 2.1 million low-rent units, impacting affordability significantly.
Economic Discrepancies
Income vs. Rent: Rent increases continue to outpace income gains, with unaffordability hitting a record high.
Government's Role
Rental Assistance: Only 1 in 4 income-eligible households receive government rental assistance, highlighting the limitations of such programs.
Deep Dives and Data
Aging Units and Accessibility Needs
The median age of rental units has hit 44 years, emphasizing the need for maintenance and updates.
An increasing older adult population demands more accessible housing features, underscoring a growing sector in the rental market.
Technological and Environmental Considerations
The report discusses the impacts of climate change on housing and the push towards energy efficiency and security.
Addressing the Challenges
Zoning and Development Hurdles
Rental Deserts: Certain suburban areas, termed "rental deserts," face a lack of rental stock due to restrictive zoning policies.
Building New Units: High interest rates and regulatory barriers have slowed multifamily housing developments, exacerbating the supply shortage.
Future Directions
Innovations in zoning and faster permit processes could incentivize more multifamily constructions, tackling the pressing issue of supply.
Call to Action
As we digest this wealth of information, it's crucial for us, as landlords and real estate investors, to consider how these trends affect our strategies and decisions. Whether it's addressing maintenance backlogs, considering unit conversions for increased accessibility, or engaging with local legislation on zoning reforms, there's much we can do to adapt and thrive in this evolving market.
So, lace up your landlord skates and head towards where the puck is going to be. For a deeper dive into the findings and to make informed decisions for your rental business, I highly encourage you to explore the full report on my website, mylifeasalandlord.com.
Join me next time as we continue to explore the ins and outs of landlord life and real estate investment. Until then, keep learning, keep growing, and let's make smart, forward-thinking decisions in our rental businesses.