2024’s Hottest Investment: Why Rental Properties Will Make You Rich Despite Housing Crisis

2024’s Hottest Investment? Despite Housing Crisis, Experts Explain Why Rental Properties Will Make You Rich

Are you considering investing in rental properties? Experts are pointing to now as a prime opportunity to capitalize on the rental market, despite the current housing crisis.

While mortgage rates may be higher than usual, the potential for building equity and earning rental income could outweigh those concerns. A recent study by RentCafe shows a trend of Gen Z renters who, despite having more money in their 20s than millennials, are still choosing to rent over buying. This suggests a strong rental market, and investors who act before it cools could benefit greatly.

According to Capital Max Chief Marketing Officer Kris Mullins, this demand makes rental properties an attractive investment. “We are witnessing a massive surge in renters, driven by factors like rising student loan debt delaying homeownership for millennials and a preference for flexibility among Gen Z,” Mullins told GoBankingRates. “With a growing renter pool chasing a potentially limited supply of rental units, vacancy rates are likely to stay low, which translates to consistent rental income for property investors.”

Suzanne Moore, founder and investment-focused real estate agent at Central Oregon Investor Institute, emphasized that investing in real estate is accessible to anyone and that you don’t need a lot of money to get started. “Real estate is the only asset you can buy with someone else’s money — a loan — and then have someone else pay it off for you — the rent you collect,” Moore said.

However, careful planning is key when it comes to investing in rental properties. RentRedi CEO Ryan Barone advises thorough research to set yourself up for success. This includes calculating your potential return on investment (ROI) to ensure the property aligns with your financial goals.

Location is crucial when it comes to rental properties. Look for properties close to desirable amenities like good schools, shopping, entertainment, parks, and public transportation. These factors attract higher-quality tenants and command higher rents, boosting your potential ROI.

Barone also recommends diversifying your portfolio by investing in properties in different locations to protect against fluctuating markets. “Buy and hold is a great entry point for people with money but little time,” Moore added.

In conclusion, despite the housing crisis, experts are optimistic about the potential for rental properties to make investors rich in 2024. With careful planning, thorough research, and strategic location choices, rental properties could be a lucrative investment opportunity in the coming year.