Rising home prices are pushing more people to rent that at any time in more than 50 years, according to a new report.
A new analysis of Census Bureau data by the Pew Research Center found that more US households are headed by renters than at any time since at least 1965, according to a MarketWatch report.
“The total number of households in the United States grew by 7.6 million between 2006 and 2016,” the Pew Research analysis said. “But over the same period, the number of households headed by owners remained relatively flat, in part because of the lingering effects of the housing crisis.”
The percentage of households renting was just over 31% in 2006. By 2016, it had risen to nearly 37%, MarketWatch reported.
“Certain demographic groups – such as young adults, nonwhites and the lesser educated – have historically been more likely to rent than others,” Pew said. “However, rental rates have also increased among some groups that have traditionally been less likely to rent, including whites and middle-aged adults.”
Given skyrocketing home prices, that’s perhaps unsurprising; according to MarketWatch, just 45% of renters can afford the payments on a median-priced home in their area. In really pricey areas – like the West Coast, Florida and the Northeast – as few as 10% of renters on average can afford mortgage payments on a median-priced house.
Adults under 35 are the most likely of all age groups to rent instead of own, according to MarketWatch. Last year, 65% of all households headed by people in that age group were renting. In 2006, that number was 56%. Rental rates have also gone up among Gen-Xers. Among older baby boomers and other senior citizens – those 65 or older – the rental rate has remained steady at around 20%, MarketWatch reported.
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