Size of the rental Market USA
As of 2021, there were approximately 44 million renter-occupied housing units in the United States, according to the U.S. Census Bureau. This represents roughly 35% of all occupied housing units in the country.
According to the U.S. Census Bureau, approximately 31.7 million people moved within the United States between 2019 and 2020. This includes both inter-state and intra-state moves. Of those who moved, 15.9 million people moved to a different county within the same state, while 7.3 million people moved to a different state.
The number of renters in the United States has been increasing in recent years, driven in part by demographic shifts and changes in the housing market. Renting has become increasingly popular among younger generations and people who value flexibility and mobility, while affordability issues including rising home prices and tighter lending standards have made it more difficult for many people to buy homes.
USA Rental Market is $662 Billion
It is difficult to provide an exact figure for the total amount of rent paid by tenants in the United States in a given year, as this can vary depending on a number of factors such as the size and location of the rental market, average rent prices, and the number of rental units occupied.
However, we can estimate the total rent paid by tenants in the United States based on available data. According to the U.S. Census Bureau, the median monthly gross rent for rental units in the United States was $1,238 in 2021. Assuming this rent level is representative of the entire rental market, we can estimate that the total rent paid by tenants in the United States in a year would be roughly $662 billion ($1,238 x 44 million renter-occupied housing units x 12 months).
It is important to note that this is an estimate, and the actual total rent paid by tenants in the United States could be higher or lower depending on various factors. Additionally, this estimate does not take into account rent concessions or other factors that could impact the total amount of rent paid by tenants in a given year.
Turnovers Affecting the USA Rental Market Income
Rental Turnover in the rental market refers to the frequency at which tenants move in and out of rental properties. High turnover rates can be an indicator of a competitive rental market, while low turnover rates can be an indicator of stability and tenant satisfaction.
According to a report by Zillow, the median turnover rate for the U.S. rental market was 17.6% in 2019. This means that roughly one in six rental units were vacated and filled with new tenants during that year. However, turnover rates can vary significantly depending on factors such as local housing markets, economic conditions, and tenant demographics.
It is worth noting that the COVID-19 pandemic may have had an impact on turnover rates in the U.S. rental market, as economic disruptions and job losses may have made it more difficult for some tenants to pay their rent and remain in their homes. Additionally, changes in remote work and lifestyle preferences may have led some tenants to move away from urban areas and to seek out more affordable or desirable living arrangements.
What is the Cost of Rental Market Turnovers in the USA?
Turnover costs in the rental market can include expenses such as cleaning, repairs, advertising, and leasing fees.
According to a report by the National Multifamily Housing Council (NMHC), turnover costs in the U.S. apartment industry averaged $1,750 per unit in 2020. This includes expenses such as cleaning, maintenance, make-ready, and leasing costs associated with turning over a vacant unit.
The exact cost of rental market turnovers can vary depending on a variety of factors such as the size and location of the rental property, the age and condition of the unit, and the type of tenant turnover (e.g., voluntary, or involuntary).
It is worth noting that the COVID-19 pandemic may have had an impact on turnover rates in the United States rental market, as economic disruptions and job losses may have made it more difficult for some tenants to pay their rent and remain in their homes. Additionally, changes in remote work and lifestyle preferences may have led some tenants to move away from urban areas and to seek out more affordable or desirable living arrangements.
Size of the Rental Market Canada
As of 2021, there were approximately 4.4 million renter-occupied households in Canada, according to Statistics Canada. This represents roughly 32% of all households in the country.
The number of renters in Canada has been increasing in recent years, driven in part by factors such as rising home prices, tighter lending standards, and demographic shifts. Renting has become increasingly popular among younger generations and people who value flexibility and mobility, while rising home prices and tighter lending standards have made it more difficult for many people to buy homes.
According to Statistics Canada, there were approximately 318,000 interprovincial migrants in Canada in 2020. This includes individuals who moved from one province or territory to another within Canada for at least six months. Additionally, there were approximately 77,000 international migrants who settled in Canada in the same year.
The reasons for population migration in Canada are diverse and may include factors such as job opportunities, family considerations, and lifestyle preferences. Certain provinces may be more attractive to migrants due to factors such as lower housing costs, favorable economic conditions, or a strong quality of life.
Canada Rental Market is $34.5 Billion
It is difficult to provide an exact figure for the total amount of rent paid by tenants in the United States in a given year, as this can vary depending on a number of factors such as the size and location of the rental market, average rent prices, and the number of rental units occupied.
According to the Canada Mortgage and Housing Corporation (CMHC), the average rent for two-bedroom apartments in Canada was $1,165 per month in 2020. Assuming this average rent level is representative of the entire rental market in Canada, we can estimate that the total rent paid by tenants in Canada in a year would be roughly $34.5 billion ($1,165 x 2.5 million renter-occupied households x 12 months).
It is important to note that this is an estimate, and the actual total rent paid by tenants in Canada could be higher or lower depending on various factors such as the size and location of the rental market, average rent prices, and the number of rental units occupied. Additionally, this estimate does not take into account rent concessions or other factors that could impact the total amount of rent paid by tenants in a given year.
What is the Cost of Rental Market Turnovers in Canada
Turnover in the rental market refers to the frequency at which tenants move in and out of rental properties. High turnover rates can be an indicator of a competitive rental market, while low turnover rates can be an indicator of stability and tenant satisfaction.
According to a report by the Canada Mortgage and Housing Corporation (CMHC), the average annual turnover rate for rental apartments in Canada was 20.1% in 2019. This means that roughly one in five rental units were vacated and filled with new tenants during that year. However, turnover rates can vary significantly depending on factors such as local housing markets, economic conditions, and tenant demographics.
It is worth noting that the COVID-19 pandemic may have had an impact on turnover rates in the Canadian rental market, as economic disruptions and job losses may have made it more difficult for some tenants to pay their rent and remain in their homes. Additionally, changes in remote work and lifestyle preferences may have led some tenants to move away from urban areas and to seek out more affordable or desirable living arrangements.
PerfectPayRent Should Be a Key Strategy When Renting out New and Vacant Rental Units to Reduce Turnover Frequency
Reducing furture turnover costs can be a key strategy for landlords and property managers to maximize profitability in the rental market. A key strategy to reduce turnover costs can be PerfectPayRent rent payment app allowing Landlords and Tenants to have a stronger, more stable, and secure leasing partnership.
Leasing with PerfectPayRent means Landlords are guaranteed that their rent is paid on time every month and their Tenants have access to PerfectPayRent leasing incentives that improve tenant satisfaction and provide solutions to help Tenants with unexpected income loss or budgeting issues that may affect their ability to pay rent.
Are you a landlord or a tenant? Contact us today to find out more: info@perfectpayrent.com