While the stock market continues to show volatility and with the Fed expected to hike the next two FOMC meetings, our strategy is to sit out the stock market until we have some level of stability. In the meantime, we have been working on our rental property strategy. Today, we will walk you through some of our analysis and reasons for getting into rental properties.
First, let’s take a look at the demographics of the United States.
If we look at the ages across all groups, all but Generation Alpha are at an age point where individual/family housing is needed. Boomers, Gen X, Gen Y and parts of Gen Z all need housing now and likely at an age of family formation.
Unfortunately, there isn’t enough housing right now and with interest rates climbing it will make housing purchases through financing much more difficult. The end result is people will be forced to rent or continue renting for the next few years until housing corrects, expands and interest rates become more affordable.
Cash buyers for housing will have a better opportunities coming up after the next FOMC rate hikes. We’ve been keeping an eye on key markets we wish to expand our rental properties and hope to make a buy or two later this year.
In future posts, we’ll take a look at what we look for but as you might have guessed already, demographics will be the key.
Stay tuned and stay solvent…