Renter Households Growing Three Times Faster Than Homeowner Households

Tuesday, 5 November 2024, 21:53

Renter households are growing at an unprecedented rate, outpacing homeowner households by three times, according to a recent report by Redfin. With the growth rate of renter households hitting 2.7 percent, affordability challenges are intensifying ahead of the 2024 election. The trend highlights the challenges many face in the housing market, particularly younger generations seeking stability.
Thehill
Renter Households Growing Three Times Faster Than Homeowner Households

Renter Households Outpacing Homeowner Growth

The share of renter households in the U.S. is experiencing a significant increase, growing at a rate that is three times faster than that of homeowner households. A new report from real estate company Redfin reveals that this trend is attributed to the rising costs of homeownership

Record Growth Rates

In the third quarter, renter households surged by 2.7 percent, reaching an all-time high of 45.6 million. Conversely, the growth of homeowner households was only 0.9 percent, totaling 86.9 million households.

Housing Affordability Crisis

  • Median asking rent increased by 0.6 percent year over year in September.
  • Wages have seen a 4 percent growth, making rentals more affordable.

As the housing market becomes a pressing issue leading up to the 2024 presidential election, a significant 69 percent of voters reported being 'very concerned' about housing costs.

Generational Shifts in Homeownership

According to Redfin Senior Economist Sheharyar Bokhari, the narrative surrounding homeownership is shifting as young Americans grapple with soaring prices and high mortgage rates. 'Renting may be the only option' for many young families, suggesting a change in perception regarding homeownership for future generations.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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