Renter Households Reach 50-Year High

July 31, 2017

Renter Households Reach 50-Year High

The Pew Research Center’s analysis of Census Bureau data found that renter household percentages have increased since 2006 across a variety of demographic factors.

July 21, 2017 | Paul Bubny | GlobeSt.com

WASHINGTON, DC—The percentage as well as number of US households led by renters is at the highest level in more than 50 years, the Pew Research Center reported this week. The research organization’s analysis of Census Bureau housing data found that growth in the percentage of renters extends across a variety of demographic factors, including age, education level and ethnicity.

Over a 10-year span from 2006 to 2016, the number of US households grew by a net 7.6 million, according to the Pew report. However, the number of owner households dropped from 76.1 million to 75 million during that time, while the number of renter households grew by nearly nine million as their percentage of all households increased from 31.2% in ’06 to 36.6% last year. “The current renting level exceeds the recent high of 36.2% set in 1986 and 1988 and approaches the rate of 37.0% in 1965,” the report states.

Younger adults as well as black and Hispanic Americans are still more likely to rent, with renters comprising 65% of under-35 household heads, 58% of black household heads and 54% of Hispanic-led households. However, rental rates have increased for household heads ages 35 to 44 (41% in ’16, up from 31% in ’06) and those ages 45 to 64 (from 22% to ’06 to 28% last year). Twenty-eight percent of white household heads are now renters, compared with 24% a decade ago.

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Gregory De Jong, CFP, Co-Founder of Paragon Advisors, LLC.
July 7, 2015

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