In recent years, there has been an increase in investor appetite for real estate businesses in the United States, and Chile has been no exception. According to data from ACAFI, in the last two years, investments by Chilean real estate funds in the US have more than doubled.

The United States has the world's largest economy, with a GDP of USD 21.5^trillion in 2020^and a total population of 332 million people, of whom 206 million are economically active, making it a major source of business opportunities.

The country's GDP per capita is currently USD 64,000 per year, and according to estimates by the International Monetary Fund, it should reach USD 80,000 in 2026. (see graph 1)

Opportunities in the Residential Rental Market

According to data from the US Census Bureau, 8.3 million households have been formed since 2010, but only 4.9 million homes have been built during that period, which means that the deficit in 2019 was approximately 3.4 million homes in the country. In perspective, this figure is equivalent to 50% of the total number of homes in Chile and, in monetary terms, around USD 1.181 trillion.

On the other hand, buying a home has become increasingly less accessible, with prices rising by more than 60.9% over the last decade(see Figure 2) and access to financing becoming increasingly restricted in the wake of the 2008 financial crisis.

In addition to this, there have been changes in social behavior, with people marrying at a later age and millennials, who represent 25% of the total population (75 million people), being less likely to buy a home to live in.

In this context, it can be seen that people are choosing to rent properties, with an increase of approximately 8 million new tenants since 2009, reaching 108.5 million people who prefer to rent a home (see Figure 3), and it is estimated that by 2025 this figure will reach 115 million^tenants.

Favorable market conditions for the residential rental business mean that investors are preferring to invest in this type of asset, which is presented as an alternative that allows for portfolio diversification, generates stable cash flows, and delivers returns with lower volatility.

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[1] U.S. Census Bureau (2020).