Rental income profit at all-time high
By Jordan Yadoo, Bloomberg
The value of owning a home in the U.S. has never been greater, at least according to one figure buried in a monthly Commerce Department report.
The share of Americans’ total personal income coming from rental profit rose to a record 4.4 percent in the first quarter of 2016, data released in June show. That’s at an all-time high in figures dating back to 1947, and is up from just 0.7 percent 30 years ago.
Rental income includes landlords’ profits, according to the Commerce Department’s definition. What’s perhaps less obvious: It also includes how much owner-occupants would make if they rented out their house or apartment, after accounting for expenses including mortgage interest and property taxes or insurance.