US Home Ownership Hits 13 Yr Low, Spurs Rental Market
08 August 2011
Home ownership in the US has fallen to its lowest level in 13 years as the foreclosure process lengthens and banks start knocking down homes they can't sell, because they can no longer afford to tax or maintain them. The fact that employment growth is failing to accelerate as was hoped isn't helping either.
The crumbling homeownership rate is leading to massive demand for rental properties, with particularly strong demand in the multi-family sector. This is making the thousands of repossessed houses and apartments being sold at bargain-basement prices across America a fantastic investment prospect according to experts.
"We believe that the limited supply of high quality rental properties and other broad demographic trends…all support continued growth in the U.S. multi-family sector," said Peter Ballon, vice-president and head of real estate investments for the Americas at the Canada Pension Plan Investment Board (CPPIB)
"We see U.S. multi-family real estate investments as an attractive opportunity to build our portfolio in this sector over the coming years," he added.
The CPPIB has just invested $300 million in apartment buildings in Boston, Los Angeles, San Jose, Seattle and Washington D.C.