Inflation continues to be a hot topic across the country right now. The consumer price index continues to show a 7.5% increase year over year. This figure fails to calculate the ever-increasing price at the pump. All indicators point to the current inflationary cycle being far from transitory. Rental real estate is continuing to prove to be a safe haven for investor capital.

The overall median rent nationwide as of January was $1,789 per month according to Realtor.com. Year over year that’s a 19.8% increase. January was the eighth consecutive month rents rose more than 10%.

“U.S. rental markets are more than making up for lost time, with January data showing national rents continued to surge by double-digits over last year”, Realtor.com chief economist Danielle Hale reported. This surge in rental costs creates the hedge investors seek when in an inflationary market like we’re currently experiencing. At KeyCity Capital, we are tracking these numbers very closely to ensure our properties are renting at market rates for the municipality they’re located in.

A secondary factor driving the rental real estate increases is housing inventory. As we continue to see population growth in the southeastern United States, housing starts are not keeping pace. This shortage of homes has not only increased home values but has had the secondary effect of driving rent rates higher. Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors, verifies these insights when noting, “housing affordability and low inventory has made it even more challenging for buyers to enter into homeownership.”

At KeyCity Capital, we will continue to focus on multi-family workforce housing. The runway in this investment space shows a dynamic future for investor returns. Click the link below to set up a time to talk about your current portfolio along with our new offerings.

This communication is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer will be made solely through definitive offering documents provided pursuant to Regulation D, Rule 506(c), and available at lasatercapital.com/invest. These offering documents may be amended or updated from time to time, and prospective investors should rely only on the most current version. Investments offered are available only to accredited investors as defined by the SEC. Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal. Prospective investors should carefully consider their investment objectives, risks, charges, and expenses, and are strongly encouraged to consult with their tax, legal, and financial advisors prior to making any investment decision.