The data shows us something important: more and more people are choosing to rent, not just for a short while, but as a long-term option. This is happening because, even though salaries are slightly increasing across industries, it's still not enough for a lot of people to afford buying a house. In turn, this means more people are looking to rent or will continue to rent, which is great news for those invested in multifamily.
Job Growth By Industry
Understanding Today's Renters:
Contrary to the common belief that renting is mostly for those with lower incomes, recent data shows a significant rise in higher-income households choosing to rent. According to research from the Joint Center for Housing Studies at Harvard University, there's been a
"43 percent increase since 2010 in renter households earning $75,000 or more, totaling 13.5 million by 2022."
This growth has broadened the renter base and increased the proportion of renters in this income group to 30%. This trend is especially strong in high-cost living areas, where even well-off households find buying a home challenging due to high property prices and limited availability. This shift reflects larger trends in the housing market, including a preference for flexibility, the difficulty of saving for a down payment in the face of rising rents, and the appeal of modern rental properties with attractive amenities. The changing landscape of the rental market shows that renting is becoming a popular choice for people across various income levels.
Average Annual Salary Per Industry
Understanding the demographics of renters across industries is important to take into consideration as a multifamily investor. One of the most foundational aspects of a successful multifamily investment hinges on the strength of the tenant base. Who your renters are is important and understanding their needs and preferences, as well as potential ability to absorb rent increases, has to be taken into careful consideration when you’re evaluating which multifamily assets to buy or invest in.
Here is an insightful breakdown of the average annual salaries of these industries from the jobs report, along with some examples of what type of positions fall into these categories:
- Leisure and Hospitality: $28,660.84
- Examples: Hotel Front Desk Agent, Restaurant Server
- Retail Trade: $37,596.00
- Examples: Retail Store Associate, Cashier
- Trade, Transportation, and Utilities: $51,879.36
- Examples: Freight Truck Driver, Utility Worker
- Other Services: $51,883.00
- Examples: Hair Stylist, Repair Technician
- Private Education and Health Services: $57,972.72
- Examples: School Teacher, Licensed Practical Nurse (LPN)
- Private Service-Providing: $59,047.56
- Examples: Customer Service Representative, Marketing Coordinator
- Transportation and Warehousing: $59,455.76
- Examples: Warehouse Operations Manager, Delivery Driver
- Total Private Sector: $61,230.52
- Examples: Office Administrator, Sales Representative
- Nondurable Goods Manufacturing: $61,579.96
- Examples: Food Processing Worker, Textile Machine Operator
- Manufacturing: $68,592.68
- Examples: Factory Worker, Quality Control Inspector
- Goods-Producing: $71,960.20
- Examples: Construction Equipment Operator, Welder
- Durable Goods Manufacturing: $72,717.32
- Examples: Automobile Assembly Worker, Aerospace Technician
- Wholesale Trade: $74,700.08
- Examples: Wholesale Account Manager, Warehouse Inventory Controller
- Construction: $76,042.20
- Examples: Electrician, Carpenter
- Professional and Business Services: $78,045.76
- Examples: Management Consultant, Accountant
- Financial Activities: $86,271.12
- Examples: Financial Analyst, Insurance Agent
- Mining and Logging: $90,796.16
- Examples: Mining Engineer, Forestry Supervisor
- Information: $92,519.96
- Examples: Software Developer, Data Analyst
- Utilities: $109,877.04
- Examples: Electrical Engineer, Power Plant Operator
Final Thoughts
The January Employment Report, and other encouraging economic signs, really highlight why investing in real estate, especially multifamily, is a smart move. More and more people with good incomes are renting because buying a house is still too far out of reach, and likely will remain so for the foreseeable future. For investors, this is a great chance to get into a market that's not just in demand, but also still growing. If you're looking to create additional passive income from this demand, our Blue Lake Multifamily Fund could be the perfect way for you to get involved in the booming U.S. rental scene.
About Ellie Perlman
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
