US Homeowner Challenges Drive Rent Growth

The American dream of owning a home is becoming harder to reach. CBRE's latest research highlights that average monthly mortgage payments now significantly outpace apartment rents, a trend set to continue for at least the next five years. This shift is propelled by factors like rising mortgage rates, a housing supply shortage, and reduced turnover of existing homeowners – all of which are driving up home prices.

As homeownership becomes less attainable, CBRE projects steady growth in the multifamily rental market. This presents opportunities for investors, particularly in markets like Charlotte, where premiums for buying a home are likely to return to pre-pandemic levels within five years. This favorable shift indicates a strong investment climate for the Charlotte multifamily sector.