Renters Now Majority in 100+ Suburbs
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Residents in major metropolitan areas are renting more than buying homes as compared with 10 years ago, according to a report.
Renters are the majority in 103 suburbs that were dominated by homeowners 10 years ago, according to a survey by RENTCafé. Almost 60 other suburbs are expected to follow suit in the next five years including those around Miami, Washington, D.C and Los Angeles.
Merrifield, Virginia, a suburb of Washington, D.C., tops the list of suburbs where renters are the majority. Merrifield had the largest change in renter share from 2010 to 2019 with a 46% increase. The share went from 44% in 2010 to 64.2% in 2019.
Suburbs following Merrifield where renters became the majority are:
- Brownsville, Florida
- San Pablo, California
- Hawaiian Gardens, California
- Altamonte Springs, Florida
- Inkster, Michigan
- Jennings, Missouri
- East Lake-Orient Park, Florida
- Arden-Arcade, California
- Country Club, Florida
The report also lists the suburbs expected to switch to renter majority in the next five years. At the top of the list is Azusa, California.
Cities also expected to switch to renter majority in the next five years are:
- Morrisville, North Carolina
- South Pasadena, California
- Lakewood, Ohio
- Escondido, California
- Newport, Kentucky
- Oakland Park, Florida
- SeaTac, Washington
- Sunrise Manor, Nevada
- Melrose Park, Illinois
About 21 million people rent a suburban home in the 50 largest U.S. metros. That is 3.7 million more renters than 10 years ago, the report shows.
According to census data, most renters are millennials and Generation Zers who are looking for housing options that better suit their budgets. The data shows that 55% of suburban renters are younger than 45 years old, with median household earnings of around $50,000.
However, the rental demand among those earning $75,000 a year or more has been strong compared to early 2000s, when lower-income households drove more of the growth.
For more information about the renters market transition report click here.
Andre Claudio is assistant editor at Route Fifty
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