A comprehensive look at what’s trending in the world of commercial real estate
When the Great Recession sent scores of Americans out of their homesand millennials began to move out ontheir own, renting took off in the early
By the mid-2010s, 111 million peoplewere renting in the US, according toRENTCafe.com.
Then, for the first time since 2004, thenumber of renters declined in 2016, ticking down 0.1%, according to RENTCafe.com. Since then, the renter populationhas been on a downward trend, decreasing by 1% in 2019.
That year the number of renters fell to
107 million, as many millennials began to
purchase homes. Homeownership
increased to almost 213 million at the
close of the decade, according to US
Now, new demographic trends point toanother reversal.
RENTCafe.com projects that an estimated 45 million Gen Z-ers will haveentered the housing market by 2025. Mostof those young adults will be more likely torent. “And, if the current behavior patternsof young millennials and adult Gen Z-erscontinue, the renting lifestyle is poised toregain some ground in the next decadeand maintain a solid footing in urbanareas,” according to RENTCafe.com.
Overall, renters still make up 33.6% of
the US population, increasing from 33%
in 2010. At the beginning of the decade,
homeowners made up 67% of the popula-
tion. Now, they represent 66.4% of all
Certain cities, though, have been outliers in recent years. For instance 23 markets with more than 100,000 residentsgained a renter-majority last decade, eventhough the numbering of renters wasdeclining overall, according to REN TCafe.com. Texas has four of RENTCafe.com’s10 cities with the highest renter share.Those include Frisco, Plano and McKinneyand The Woodlands.
Owners were the majority in only 12 ofthe cities analyzed by RENTCafe.com inthe same timeframe. Notably, Baltimore,Chicago and Sacramento, Calif., havetransitioned to an owner majority since2010. —Les Shaver
WE’RE BECOMING A RENTER NATION AGAIN