The number of families with minor children who own their home has declined since the housing crisis, while those living in rentals increased over the same period, according to a RENTCafe analysis of US Census Bureau data.
Homeowner families with children declined by 3.6 million, or 14%, from 2006 to 2016. RENTCafe said the decline reflects tighter lending rules, the shortage of entry-level homes, and increasing home prices. Meanwhile, the number of families with children living in rentals increased by 1.9 million, or 16%.
Census data revealed that 22.1 million families with minor children own their homes, accounting for 29% of all owner households. Meanwhile, 33% of all renter households have minor children, or a total of 14.3 million households.
Despite single-family homes becoming more unaffordable to purchase as prices go up and construction slows, RENTCafe said there appears to be a generous stock of rental housing available for families with minors. There is high demand for single-family rentals among families with kids, the analysis found. Over the decade, the number of rentals increased by 3.6 million units.
RENTCafe also found that the increased renter demand for large-sized apartments is being met by the multifamily industry. Over the period, family-sized apartments with two bedrooms or more in large-scale buildings increased in number by more than 1.1 million units. These are in addition to the rental apartments located in smaller-sized buildings.
The analysis revealed that the decline of ownership and rise of renting among households with kids was not only present but even prominent in all 30 of the largest metro areas in the US. The Greater Charlotte Area in North Carolina topped the list, with renter families with kids surging 73% and homeowner families with kids increasing only 21%. Other Southern metropolitan areas such as Atlanta, Phoenix, Houston, and Miami also recorded some of the highest jumps in renting families.
Can renters make more money than buyers right now?
Rent increases are outpacing last years in most areas