Revenues in the US rental market are expected to reach almost $60 billion by 2021, the American Rental Association (ARA) announced at a press conference during The Rental Show.
Growth this year is expected to be 4.5%, meaning the market will reach $51.5 billion. Further increases will come in 2019 (5.6%), 2020 (5%) and 2021 (4.4%). The ARA announced these figures during the first day of The Rental Show held in New Orleans.
The ARA said its forecast for 2018 was the same as its report in November last year, but growth from 2019 to 2021 had been re-forecast, increasing the percentage growth year-on-year.
The association added that Tax Cuts and the Jobs Act would be key to future growth in the U.S.
In Canada, meanwhile, rental revenues are forecast to reach CA$6.13 billion by 2021. It said growth would be 4.1% in 2019, 5% in 2020 and 4.7% in 2021.
John McClelland, ARA’s vice president for government affairs and chief economist, said, “Our rental revenue forecast has increased somewhat in the out-years of the forecast. One significant reason for this increase is the long-term effects of the recently-passed tax cuts for both businesses and individuals.”