For the past 5 years, apartment rental has been consistently surging and is projected to continuously grow for the next couple of years or so.
Los Angeles, CA (PRWEB) April 08, 2014
For the past 5 years, apartment rental has been consistently surging and is projected to continuously grow for the next couple of years or so. The tremendous demand for apartments these days brought good news to a lot of U.S. landlords as well as real estate investors—including self employed retirement account holders with self directed retirement plan. This trend does not only excites real estate builders and construction companies, but even holders of Solo 401k plans for self employed individuals are equally excited on this opportunity where they could grow their retirement money.
A rental housing website which uses inflation-adjusted figures, Apartment List, reports that within year 2000 to 2012, the number of apartment rents have increased by 6%. This rise in apartment rental caused dropdown on renters’ income by 13%. According to Apartment List’s CEO, John Kobs, “That's what we call the affordability gap. I don't see that improving in the near future." With this kind of percentage, investing funds from self-directed retirement plan for self employed individuals will benefit without a doubt.
This upsurge in the apartment rental industry is one of the effects of the post-recession, as U.S. economy strengthens and real estate industry gets back on track and recovers from the losses it had almost 5 years ago. High demands mean rising prices not just in apartment rentals but also in home ownership. More people with average income are having steady jobs which make them capable of renting an apartment but not yet for purchasing their own home. Reis, a commercial real estate data provider, reported a drop from 8% to 4.1% in apartment vacancy rate from 2009 up to 2013.
The U.S market nationwide increase in rents reached 3.2% in 2013. Cities where rents increased the most and where Solo 401k for the self employed retirement account holders can be invested are in Seattle and San Francisco. Seattle received a 7.1% increase from the prior year while San Francisco received a 5.6% increase. According to Reis, about 127,000 apartments have been added in the inventory in 2009 but still insufficient with the increasing demand.
Sense Financial is California's leading provider of retirement accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. Over the years, they have assisted hundreds of clients obtain checkbook control over their retirement accounts while providing them with the ability to invest in virtually any investment class, including real estate, private lending, mortgage notes and much more without the need for custodian approval.
To learn more about the solutions they provide, please contact: (949) 228-9393.