Housing
10 US Cities Where High-Income Rentals Are Growing Fastest
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Among U.S. households with more than $150,000 in annual income, the percentage of renters has been growing faster than percentage of owners. In 2010, for example, owner-occupied households grew by 0.9% compared with growth of 7% in renter-occupied households. In 2015, renter numbers rose 12.2% compared with growth of 8.3% in owner numbers.
The gap has been narrowing since 2011 when renting outpaced owning by 9.3 percentage points. The number of households earning more than $150,000 a year rose by 217% between 2005 and 2015, but the number of homeowners in that group rose by just 82%.
The data were reported earlier this week by RentCafé, a national apartment search website. The researchers noted that comparing 2014 to 2015, 12% more households with incomes of more than $150,000 chose to rent rather than buy. Only those earning less than $50,000 in annual income chose to buy rather than rent, and the margin was just 2%. In general, though, the share of renters earning less than $50,000 annually represents the largest group based on annual income.
RentCafĂ© compiled a list of ten large U.S. cities where high-income renter-occupied housing grew fastest. In only one, Detroit, did owner-occupied housing grow at a faster rate. Here’s the list of changes between 2014 and 2015, ranked by renter increase.
The big increase in ownership in Detroit may be due in large part to the low home prices that continue to prevail. And the large number of high-income renters in places like San Francisco and San Jose likely testify to the sky-high prices for homes in the region.
View RentCafĂ©’s full report at the firm’s website for more details
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