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Why Invest in Residential Real Estate? Why Now?

  • Jul 19, 2022
  • 2 min read

Updated: Oct 20, 2023


While other types of investments zigzag, real estate has a reputation for staying steady. Residential income-producing real estate offers a lucrative return on your investment that has a proven ability to deliver superior income to investors year after year. It is also a risk-adjusted return that allows you to diversify your portfolio without sacrificing return potential.


But, why now? That is the big question, right? Well, it’s because in 2006 the US was at its height of building at about 1.5 million units per year. Then, building virtually stopped between 2006 and 2013 with the Great Recession. Despite the lack of housing starts, our population grew 7% over the same time.


Then, according to industry reports we started to see a rebound in 2018 with 1.1m units, in 2019, it was reported 1.29m units and in 2020 1.38m new builds were reported. And, according to the National Builders Association, 1.64 million builds are predicted for 2021.

But, as of today, the building industry has still not rebounded to those number of units. In fact, construction of new homes in the past 20 years fell 5.5 million units short of long-term historical levels, according to a National Association of Realtors report. That represents a very significant number over the past 20 years and has led to the housing shortage we currently find ourselves in.


This highlights one of the fundamental reasons we started the Ruthian Investment Fund, the ever-shrinking supply of housing. It’s also led to a nationwide rent increase of 5.2% year over year, which is why Ruthian has a full-service management company with 60+ years of property management experience that allows us to control costs and identify the right tenants.


So, why now. Despite the lack of housing, our population continues to grow. Population increases and very little building is a basic supply and demand problem. Also, rents are on the rise with no decline in sight.


For more information about Ruthian, go to www.ruthianllc.com or email us at invest@ruthianllc.com.

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793A E Foothill Blvd #28, San Luis Obispo, CA 93405

invest@ruthianllc.com  |   805-550-5333

*Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections made in this website and/or blog, may not reflect actual future performance.  No conclusion of any type or kind should be drawn regarding the  performance of investments offered or managed by us based upon the information presented herein. Performance information presented has been prepared internally (unless otherwise noted) and has not been audited or verified by a third party. Information on this page is based on information available to us as of the date of posting and we do not represent that it is accurate, complete or up to date.

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