US Housing

US Housing Market Focus

3 December, 2018

Slowing home sales good news for the rental market

Home sales are set to tread water over the next couple of years, which is good news for the rental sector. If Americans aren’t buying homes, many will look to rent one instead. Admittedly, the upcoming economic slowdown will weigh on household formation. But we doubt employment growth will turn negative, and rental vacancy rates are likely to hold steady. In turn, that will prevent a marked drop in rental growth, which is set to slow gradually to around 3% y/y by the end of 2021.

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