Majority of people in big US cities opt to rent: report

Miami surpassed New York City with highest level of renters

New York /
Feb.February 09, 2015 10:10 AM

It’s a renter’s world out there.

Major U.S. cities are seeing an uptick in the amount of renters compared to homeowners, according to a new report by New York University’s Furman Center and Capital One.

Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.

New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.

For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.

“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.

Rents grew faster than inflation in all of the 11 largest metro areas in the country, except for Dallas and Houston where rates remained flat, according to the report. Washington D.C. saw the biggest rent increase, with a 21 percent jump in median rent.

Philadelphia had the lowest percentage of renters in 2013, with 44 percent. Across the country, 36 percent of households are being rented, while 64 percent were owner-occupied. Developers and economists expect that the trend of renting over owning will continue. [WSJ] — Claire Moses 

 

Related Articles

arrow_forward_ios
From left: RGB chair David Reiss, tenant board member Leah Goodridge and RSA's Joe Strasburg
Rent board grants six-month rent freeze, then 1.5% hike
Rent board grants six-month rent freeze, then 1.5% hike
Kairos’ founder Ankur Jain (Getty)
Startup charts a (long) path toward homeownership
Startup charts a (long) path toward homeownership
Gov. Andrew Cuomo (Getty/Illustration by Kevin Rebong)
NY flooded with nearly 100K rent relief applications in two weeks
NY flooded with nearly 100K rent relief applications in two weeks
Salesforce CEO Marc Benioff and Amazon's Jeff Bezos are backing the startup (Getty, Arrived)
Bezos-backed Arrived Homes is latest startup to expand real estate investment
Bezos-backed Arrived Homes is latest startup to expand real estate investment
(Getty)
Housing rush: In-person school adds fire to rapidly heating market
Housing rush: In-person school adds fire to rapidly heating market
(Illustration by Kevin Rebong for The Real Deal)
Single-family rent growth more than doubles in April
Single-family rent growth more than doubles in April
President Joe Biden (Getty/Illustration by Kevin Rebong for The Real Deal)
Dear Mr. President: Landlords urge Biden to let eviction ban expire
Dear Mr. President: Landlords urge Biden to let eviction ban expire
RSA President Joseph Strasburg (Rent Stabilization Association)
Landlords plea for water rate freeze ahead of vote
Landlords plea for water rate freeze ahead of vote
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...