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.
Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052
With over 30 years of experience helping families call Las Vegas "home!"
Related Blog Posts
VRRROOOOMMMMM.... One of our most experienced real estate agents, Debra Leatham, is also a HUGE racing fan, and every March she camps out over several days at the big NASCAR event in Las Vegas. (Debra and her husband Jim are also avid Corvette enthusiasts, and he built a separate 4 car garage just for his "babies" that...
Zillow Group report details affordability struggles as real estate demand overwhelms supply Key Takeaways Inventory absorption and home prices are rising so fast that homebuyers -- particularly millennials -- are going over budget and turning to friends and relatives for down-payment help. Buye...
There is no better time to take a vacation than the summer. The children are out of school, the weather is warm, and the days stretch long in laid-back beauty.In preparation for your trip, you have placed a hold on the mail and stopped newspaper delivery, but is your house really secure from criminals looking to prey u...
Key Takeaways: Sellers tend to overprice and spend a tremendous amount of effort trying to defend their price, even if the market doesn't support it. Pricing a home correctly is a partnership between sellers and their agent, not a battle of wills. When it comes down to it, the most important advice...
by Patty Annis Yes, Las Vegas certainly has a reputation of being pretty wild! And with the ever popular marketing slogan of “What happens in Vegas - Stays in Vegas” it certainly gives someone much to think about….. What really does go on in this town? I have lived here since October of 1984 and through these...