There are more renters today than there has been at any other time over the past 50 years. People are becoming curious about how renting compares to owning a home. Here are some interesting statistics surrounding renters and homeowners.
Number of Housing Units in the U.S.
The housing crisis has had a significant effect on the United States real estate market. Currently, there are 136.57 million housing units in the nations. Most units are occupied by homeowners, but renting is on the rise.
Percentage of Units Occupied by Renters
In the United States, 33% of housing units are occupied by rent-paying tenants.
Percentage of Units Occupied by Homeowners
Homeowners, on the other hand, occupy 67% of housing units in the United States.
Rental Vacancy Rate
Currently, the rental vacancy rate is 6.9%. The rental vacancy rate is the percentage of all units available for rent.
Homeowner Vacancy Rate
The current homeowner vacancy rate is 1.6%. This figure represents the percentage of all housing units available for sale.
64.2% of homes in the U.S. are owned by their occupants.
Types of Structures Renters Live in
Renters Per Household
Number of Renter-Occupied Housing Units from 1975 to 2017 (in millions)
Number of Owner-Occupied Housing Units from 1975 to 2017 (in millions)
The Rise of Renters
Despite it being higher than the rental rate, the homeownership rate in America is currently declining. The total number of households in the United States grew by 7.6 million between 2006 and 2016. But over the same period, the number of households headed by owners remained relatively flat, most probably due to the unrelenting housing crisis. Research also shows that people are wanting to rent less and less. A recent study suggests that prominent reason for people losing interest in homeowning is the lack of affordability.A recent study demonstrated that 67% of renters viewed renting as more affordable than owning. Among Baby Boomers, people aged 53-71, 73% of those who are do not own a home said renting is more affordable. 67% of those renters claimed they were planning to continue renting, due to financial considerations. This figure from 2017 is up from 59% in 2016.
Most individuals are not planning on buying a home anytime soon. In fact, 31% of Gen-Xers, people aged 38-52, said they were going to continue to rent, which is up from 28% in 2016. Of these individuals, 19% lack interest in buying and 12% believe they would never be able to afford a home. Another reason for this changing behavior is the perceived difficulty of obtaining a home. Many people would rather not go through the process and paperwork associated with buying a home. Buying a home also gives an air of permanence, and the majority of people, especially younger individuals, may not be ready to settle down just yet. Renting is believed to be much more affordable and less stressful to deal with. Renting is on the rise, so landlords better be ready for new tenants.