The housing market is as tight as it’s ever been. Buyers are shifting to renters as they wait out heavy competition and rising mortgage rates.
And that creates a lucrative opportunity for certain real estate stocks.
Last week, I told you about a big change coming with The Bull & The Bear podcast.
I’ll now center it around our proprietary Stock Power Ratings system.
Here’s a taste of what to expect from the podcast. Each week, I’ll use our ratings system to find a top stock and then reveal why this stock is poised to beat the market by 3X over the next 12 to 24 months.
This week, I dive into the world of rental property and highlight a Power Stock with great value and growth potential.
Real Estate Stock Trend: Home Market Squeeze Shifts Focus to Renting
Anyone who’s house hunted in the last couple of years knows the market is wild.
According to iProperty Management, the homeowner vacancy rate is only 0.9% — meaning less than 1% of available homes for sale are not being lived in.
Rising interest rates, inflation and short supply are putting the squeeze on the housing market.
That’s turning more buyers into renters.
The chart above shows the difference between median mortgage payments and median rent in all 50 states.
In every state, renting a home is cheaper than buying one. The difference is as little as $228 per month to as high as $1,063 per month.
With tight supply and rising interest rates, renting a home is easier and becoming more affordable than buying.
In this episode of The Bull & The Bear, I dive into a top company in our Stock Power Ratings system and tell you why it’s a strong contender for your portfolio.
Its 94 overall rating means we are “Strong Bullish” on this real estate stock and expect it to beat the broader market by 3X over the next 12 to 24 months.
The Bull & The Bear
Led by Adam O’Dell and a team of finance journalists, traders and experts, Money & Markets gives you the information you need to make money in any market.
Be sure to subscribe to our YouTube channel for more videos, including my weekly Marijuana Market Update.
Have something you want us to talk about? Email Feedback@MoneyAndMarkets.com, and give us your thoughts.
Check out MoneyandMarkets.com, and sign up for our free newsletters that deliver you the guidance you need to make money — no matter what the market throws at you.
Also, follow me on Twitter.
Matt Clark, CMSA®
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. He’s also a certified Capital Markets and Securities Analyst through the Corporate Finance Institute. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.