Redfin Report: America’s Renter Population Is Growing Three Times Faster Than Its Homeowner Population Amid Rise in Homebuying Costs
The number of renter households grew at the second-fastest pace since 2021, while the number of homeowner households grew at the slowest pace since 2019.
Growth in the number of renter households hit a peak of
This is based on a Redfin analysis of
Renter households have formed faster than homeowner households for three straight quarters, partly because homebuying costs have risen much faster than rents.
The median apartment asking rent increased less than
“The cost of both renting and buying a home has skyrocketed in recent years, but the affordability crunch isn’t quite as severe in the rental market. That’s because America has been building a lot of apartments to keep pace with robust demand from renters,” said Redfin Senior Economist Sheharyar Bokhari. “The country’s leaders should heed this lesson when considering how to improve affordability in the homebuying market: When there’s more housing to go around, prices don’t increase as fast.”
It’s important to note that while rents aren’t growing as quickly as homebuying costs, finding an affordable place to live is still a challenge for many renters. June’s
Renters may be able to find deals in
America Has Been on a Multifamily Building Spree, But That Could Come to an End Soon
America has added a lot of renter households over the past year—855,000, to be exact. But it also has ramped up construction, which has helped accommodate that rise in demand and limit rent growth. The country is adding new multifamily housing units at an annual rate of 563,000 (as of the second quarter)—the second fastest pace in records dating back to 1994. The fastest pace was in the first quarter of 2024.
America still faces a housing shortage, but the recent boom in multifamily construction has helped narrow the gap. Multifamily building completions are at historic highs because many projects started during the pandemic housing frenzy are just now being finished. But it’s worth noting that multifamily building permits and starts have slowed significantly, which could cause asking rents to jump again in the coming years.
Over Half of Households In Los Angeles Rent—the Highest Rate in the
Nationwide, just over one-third (
Rentership rates are lower than average in parts of the country where it’s more affordable to buy a home. In
To view the full report, including charts, please visit: https://www.redfin.com/news/renter-household-growth-2024
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240802527568/en/
Redfin Journalist Services:
Kenneth Applewhaite
press@redfin.com
Source: Redfin