Homeownership is often viewed as a symbol of the American dream, but for many that aspiration is increasingly difficult to attain.

The U.S. is simply not building enough homes to account for the number of people setting up their own households.

Meanwhile, for many would-be homeowners, buying a house is becoming significantly more difficult. Housing supply is tight, down payments are progressively more difficult to save enough for, and mortgage rates have shifted dramatically higher over the past two years.

Because home prices appreciated rapidly over the past four years, the average down payment is now 50% higher. It should come as no surprise, then, that many renters are unable to make the transition to homeownership.

While the current environment suggests a challenge for would-be homeowners, economic fundamentals should continue to support the rental market. 

Rental housing, for both single family and multifamily, is one of the few real estate sectors that could see strong rental growth over the next few years.

Read more about why we believe this creates an attractive investment opportunity.