29 of the largest metros have more renters than owners

by Steve Randall09 Aug 2018

More people in America’s 50 largest metros are renting homes with most people doing so in 29 of those markets.

An analysis by Zillow reveals that the renter rate increased from 31% to 36% between 2006 and 2016 and with rising home prices, more renters are struggling to become first-time homebuyers.

"The share of US households that rent surged in the wake of the Great Recession, as millions of families were foreclosed upon and younger adults either chose to or had no choice but to rent for longer," said Zillow senior economist Aaron Terrazas. "Renting remains more common years after the recession ended and after a historically long national economic expansion.”

He added that some of this shift is down to lifestyle choices, such as young adults delaying marriage and starting families and a strong preference for living in urban.

But economics also plays a part with renters, including the many who lost their homes in the recession, unable to afford to make the jump to homeownership.

“The homeownership rate is slowly rising – the most recent data show a sharp surge in young adult homeownership over the past two years – but it will likely take many years, if ever, for it to get back to its lofty pre-recession peaks," added Terrazas.

Where renting dominates
Miami, New York, and Boston have the greatest share of renter households (almost 70% of all households in Miami and New York, 65% percent of all households in Boston). The renter rate in Miami rose 6 percentage points over the past 10 years.

In Memphis, 56% of all households are renter households, up 11 percentage points since 2006. The renter rate in Las Vegas is just over 47%, up from 38% 10 years prior.

City

Renter
Rate
in
2000

Renter
Rate
in
2006

Renter
Rate
in
2016

Percentage
Point
Renter
Increase,
2006-2016

Zillow Rent Index (ZRI)

YoY
ZRI
Change

Zillow Home
Value Index
(ZHVI)

YoY ZHVI
Change

USA

32.5%

31.1%

36.3%

5.2

$ 1,440

1.3%

$ 217,300

8.3%

New York, New York

69.8%

65.6%

68.0%

2.4

$ 2,279

-1.5%

$ 674,500

7.8%

Los Angeles, California

61.4%

60.0%

64.1%

4.1

$ 2,881

3.5%

$ 677,400

8.7%

Chicago, Illinois

56.2%

50.7%

56.3%

5.6

$ 1,601

-2.6%

$ 227,100

3.0%

Houston, Texas

54.2%

53.5%

56.9%

3.3

$ 1,429

1.6%

$ 178,300

6.3%

Philadelphia, Pennsylvania

40.7%

41.8%

47.9%

6.1

$ 1,214

0.7%

$ 149,600

11.7%

Phoenix, Arizona

39.3%

39.4%

47.0%

7.5

$ 1,294

1.8%

$ 231,500

9.6%

Las Vegas, Nevada

40.9%

38.2%

47.3%

9.0

$ 1,293

3.9%

$ 260,100

15.9%

San Antonio, Texas

41.9%

39.2%

46.4%

7.2

$ 1,272

1.4%

$ 167,600

8.0%

San Diego, California

50.5%

49.5%

54.3%

4.8

$ 2,569

1.8%

$ 622,300

7.1%

Dallas, Texas

56.8%

53.3%

59.2%

5.9

$ 1,451

2.9%

$ 192,300

14.0%

San Jose, California

38.2%

38.3%

43.1%

4.8

$ 3,440

3.5%

$ 1,106,600

24.4%

Jacksonville, Florida

36.8%

37.0%

43.4%

6.4

$ 1,193

3.1%

$ 165,300

10.1%

San Francisco, California

65.0%

60.7%

62.1%

1.4

$ 4,219

-1.4%

$ 1,358,500

9.8%

Indianapolis, Indiana

41.3%

40.6%

47.6%

7.0

$ 1,099

2.6%

$ 129,700

9.9%

Austin, Texas

55.1%

52.7%

55.1%

2.4

$ 1,750

-2.0%

$ 348,800

7.8%

Fort Worth, Texas

44.1%

39.5%

42.9%

3.4

$ 1,435

3.5%

$ 184,000

11.2%

Columbus, Ohio

50.9%

49.5%

56.0%

6.5

$ 1,184

4.9%

$ 146,100

9.2%

Memphis, Tennessee

44.1%

45.1%

56.1%

11.0

$ 835

-0.6%

$ 82,800

8.5%

Charlotte, North Carolina

42.5%

39.6%

47.8%

8.2

$ 1,351

3.1%

$ 212,800

11.9%

El Paso, Texas

38.6%

38.7%

42.1%

3.4

$ 985

0.0%

$ 123,900

3.8%

Boston, Massachusetts

67.8%

61.4%

65.0%

3.6

$ 2,629

1.8%

$ 588,200

7.5%

Seattle, Washington

51.6%

48.1%

53.9%

5.8

$ 2,486

-1.6%

$ 764,200

11.3%

Baltimore, Maryland

49.7%

49.3%

54.3%

4.9

$ 1,278

-1.2%

$ 117,300

34.7%

Denver, Colorado

47.5%

44.4%

50.0%

5.6

$ 2,060

3.8%

$ 414,700

7.3%

Washington, District of Columbia

59.2%

54.2%

60.8%

6.5

$ 2,539

-3.6%

$ 568,600

5.5%

Nashville, Tennessee

22.1%

40.3%

47.0%

6.7

$ 1,548

0.2%

$ 255,600

10.7%

Milwaukee, Wisconsin

54.7%

52.1%

59.2%

7.0

$ 1,038

3.6%

$ 113,900

10.7%

Tucson, Arizona

46.5%

45.1%

49.5%

4.4

$ 1,140

3.6%

$ 180,900

8.6%

Portland, Oregon

44.2%

42.9%

48.0%

5.1

$ 1,848

-2.4%

$ 425,500

1.1%

Oklahoma City, Oklahoma

40.5%

38.0%

40.8%

2.9

$ 1,048

-1.7%

$ 126,000

1.5%

Omaha, Nebraska

40.4%

41.0%

43.4%

2.4

$ 1,298

-1.1%

$ 167,400

8.0%

Albuquerque, New Mexico

39.6%

38.7%

39.6%

0.9

$ 1,203

0.7%

$ 192,600

5.7%

Fresno, California

49.3%

50.2%

53.5%

3.3

$ 1,301

4.8%

$ 230,600

7.6%

Sacramento, California

49.9%

48.0%

52.4%

4.5

$ 1,625

5.0%

$ 317,100

7.8%

Mesa, Arizona

33.5%

32.2%

40.7%

8.5

$ 1,339

3.7%

$ 238,600

7.9%

Long Beach, California

58.9%

56.6%

62.3%

5.7

$ 2,445

1.3%

$ 586,000

6.5%

Kansas City, Missouri

42.3%

40.6%

47.0%

6.4

$ 1,088

4.9%

$ 139,100

11.5%

Virginia Beach, Virginia

34.4%

30.4%

37.8%

7.4

$ 1,544

0.5%

$ 260,000

1.6%

Colorado Springs, Colorado

39.2%

35.6%

42.5%

6.9

$ 1,511

4.9%

$ 276,200

10.3%

Atlanta, Georgia

56.3%

50.4%

58.7%

8.3

$ 1,538

2.8%

$ 241,200

14.1%

Miami, Florida

65.1%

63.9%

69.9%

6.1

$ 2,012

-1.0%

$ 329,900

4.5%

Oakland, California

58.6%

56.3%

61.7%

5.4

$ 2,941

1.5%

$ 750,800

9.2%

Tulsa, Oklahoma

44.4%

45.5%

50.7%

5.3

$ 936

-2.2%

$ 119,400

5.9%

Cleveland, Ohio

51.5%

50.5%

58.2%

7.7

$ 844

0.6%

$ 53,400

21.1%

Honolulu, Hawaii

53.1%

49.2%

58.3%

9.0

$ 2,296

-3.8%

$ 675,000

3.7%

Minneapolis, Minnesota

n/a

45.9%

53.3%

7.4

$ 1,635

3.2%

$ 259,200

8.4%

Baton Rouge, Louisiana

47.6%

47.2%

53.2%

6.0

$ 1,302

-3.1%

$ 164,700

9.9%

New Orleans, Louisiana

53.5%

49.3%

53.7%

4.4

$ 1,340

-6.2%

$ 186,000

2.5%

Arlington, Texas

45.3%

41.9%

44.5%

2.6

$ 1,498

2.8%

$ 194,800

10.3%

Raleigh, North Carolina

48.4%

46.5%

50.9%

4.4

$ 1,410

0.6%

$ 262,200

5.7%

 


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