As we ease our way out of the pandemic, many are wondering if this is a good time to invest in the rental market, particularly single-family rentals. The fact that housing inventory will remain in short supply means that home values will continue to appreciate – good news for investors. The fact that interest rates are expected to rise means that some would-be homebuyers will be priced out of the market.
As home values rise, rental rates are expected to rise as well. Of course, eviction moratoriums provide a level of uncertainty in all this. Experts predict that the number of renters will keep vacancy rates low in most areas. In addition more homes are being built specifically for rental use only.