The surprising reason why renting is on
the rise

Report finds high-income Americans are behind homeownership decline

New York /
Oct.October 05, 2017 05:30 PM

The rise of rental housing has been one of the biggest trends in the post-2008 U.S. real estate market. But it isn’t all about falling incomes and unattainable mortgages.

Wealthy and well-educated Americans in large metropolitan areas are increasingly keen to rent, according to a new report by NYU’s Furman Center. Among households with more than 120 percent of area median income, the share of renters grew by 1.2 percentage points between 2012 and 2015, while it fell by 0.2 points among households making less than 50 percent.

The share of renters among well-educated households also grew more quickly than among their less educated peers, the report noted.

Renting households are still far more likely to be poor than homeowners: 41.6 percent of renters earned less than 50 percent of AMI in 2015, compared to 15.7 of home-owning households, the report found. A mere 21.4 percent of renters earned more than 120 percent of AMI, compared to 53 percent of home-owning households.

The report is based on data from the American Communities Survey and covers 53 metropolitan areas with 1 million inhabitants or more.

Large institutions like the Blackstone Group increased their multifamily investments since the financial crisis, pointing to growing demand from young Americans.


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Developer Bill Hutchinson, seen here in court and alongside his mugshot (Getty, Highland Park Police Department)
Facing assault charges, developer sells Miami home, lists Cali properties
Facing assault charges, developer sells Miami home, lists Cali properties
Hong Kong Stock Exchange (Getty)
Investors sell off Chinese real estate stocks
Investors sell off Chinese real estate stocks
Robert Durst (Getty)
Robert Durst convicted of murder
Robert Durst convicted of murder
Pennsylvania town offers big incentive for people to fix homes
Pennsylvania town offers big incentive for people to fix homes
Pennsylvania town offers big incentive for people to fix homes
Credit Suisse Group partners with MARK on $1B-plus rental housing fund
Credit Suisse Group partners with MARK on $1B-plus rental housing fund
Credit Suisse Group partners with MARK on $1B-plus rental housing fund
arrow_forward_ios

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

Loading...