Top Five Household Rental Markets

China is the world’s largest rental market, Slovenia is the smallest

China dwarfs the rest of the world with the sheer size of its rental market. Rented households in the countryoutsize second-placed USA by a factor of four. A huge urbanisation shift has driven demand for rentals incities, which are attractive considering the surging prices of Chinese properties in recent years.

Venezuela to see largest growth, Pakistan with biggest decline

Venezuela will see the largest rise in the number of rented households over 2018-2030. As the countrycontinues to see currency devaluation, property prices are unpredictable, with many locals preferring to rentwhile conditions stabilise.

The Middle East will be a dynamic region for growth in rentals, due to strong population growth. By contrast,Eastern Europe will see large declines in rented households, due to stagnating populations.

North America is the world’s most rent-friendly region

The proportion of rented households will be highest in developed regions, like North America and WesternEurope. This is driven by the high number of single-person households in countries like the USA, Germanyand the United Kingdom (UK), many of which are inhabited by Millennials that are not in a rush to buy ahouse, typically delaying their first home purchase until after they have started a family in their early 30's.

Argentina is the world’s fastest-growing rental market by prices

On account of surging inflation and long-standing cheap property rates, Argentina experienced some of theworld’s fastest growth in real estate prices over 2012-2017 and this has subsequently translated into rapidlyrising rental prices also. Singapore is the only market with available data that has seen an actual decreasein rental prices over this period, partly a measure by the government to ensure affordable rates for locals.

Short-term rentals market driven by Millennials

The short-term rental market (valued at over US$82.0 billion in 2017) has grown worldwide on the back ofconsumers embracing the sharing economy and platforms like Airbnb serving highly mobile Millennials.The US online marketplace for short-term accommodation is seeing rapid growth in developed markets andoffers a major challenge to established vacation and accommodation players like hotels.