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December 17, 2017

Renters Now Dominate in Half of Cities

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Renters Now Dominate in Half of Cities

Fifty-two of the 100 largest U.S. cities were majority renter in 2015, according to U.S. Census Bureau data. Since 2009, 21 cities had shifted to renter-rule. Renters now dominate in both hot housing markets such as Denver and San Diego and more tame markets like Detroit and Baltimore.

Read more: Renters May Get Upper Hand in 2017

The homeownership rate has fallen steadily for a decade as millions of foreclosures prompted more owners to rent. Renting likely will continue to rise through 2030, due to demographic trends like aging baby boomers who are opting to downsize to rentals, noted a 2015 report from the Urban Institute.

Also hampering the housing market in gaining the advantage: a shortage of homes for sale. That shortage is making it more difficult for renters to buy.

Many low-income families aren’t renting by their own choice, says Nela Richardson, chief economist at the real estate brokerage Redfin.

“We don’t have enough affordable supply in either rental or for-sale markets,” Richardson says.

Source: “Renters Now Rule Half of U.S. Cities,” National Real Estate Investor (March 23, 2017)