New Yorkers spent more than $50 billion on rent this year. In total, there are currently 3.4 million rental households in New York City, which is an increase of some 63,000 units compared to last year.
The trend is in line with the rest of the country. All told, Americans spent $441 billion on rent in 2014. That’s a $20.6 billion bump up from the year before.
Fewer Americans owned their homes this year, Bloomberg Businessweek reported. In 2014, the number of rental households grew by 2 percent, or a total of 770,000, the magazine noted.
Zillow has projected that rents will increase 3.5 percent next year. Home values will gain more than 2.5 percent, according to the magazine.
More than 5 million homes went through foreclosure proceedings since 2007, fueling an increase in demand for rental residences. As rents rise and the economy improves, young families might start reversing the trend again and begin buying rather than renting. [Bloomberg Businessweek] — Claire Moses