No of Renting US Households Reaches Highest Level in 55 Years


The number of renting US households has reached its highest level in over 50 years as former owner hotspots across the country switch to a renter majority.

The US rental population has reached its highest level in 55 years, equating to a total of 43.7 million households.

A report by nationwide apartment listing service, RentCafe, has revealed that 100 former owner hotspots have switched to a renter majority. RentCafe looked at 1,553 zip codes in the country’s 50 largest cities, and in 41% of these, the number of renters outweighs the number of owners.

Philadelphia has the most zip codes that have switched to a renter majority, with seven neighbourhoods now dominated by renters.

The report also revealed that several zip codes are now made up almost exclusively of renting households; these areas are located in New York City, Nashville, San Francisco, Dallas, and Fort Worth.

The US homeowner population is shrinking

Acquiring an adequate deposit for a home, on top of rising mortgage costs, is becoming increasingly unaffordable for many US citizens.

US house prices grew by 17% in June 2022. This comes not long after registering a record-high growth rate of 18.7% in September 2019 (CEIC).

Mortgage rates have doubled since the start of the year. The average 30-year, fixed-rate mortgage rose from 3% at the start of January to a 20-year high of 7% in October.

In light of this, it is unsurprising that many are finding themselves unable to get onto the property ladder, and existing homeowners are struggling to pay their mortgages.

However, for investors sat on cash, this opens up a sea of opportunities in the US rental market.

Red hot US rental markets

With rental prices rising, and an increasing number of US households opting to rent, rental properties in the US are more profitable than ever.

Thriving rental pockets are appearing across the country. Notably, markets in the northeast (such as Jersey and Philadelphia) are gaining momentum. In the west, Orange County is dominating California’s rental market, drawing in a young renting population with its thriving economy and enticing job prospects.

However, Florida is storming ahead of its peers in terms of rental competition. Miami-Dade County is the nation’s most competitive apartment market in 2022, according to RentCafe, whilst markets in South and Central Florida are also some of the hottest in the country.

The sunshine state is experiencing a population boom. This, coupled with rising mortgage rates and a lack of rental properties on the market, is fuelling an unheard-of demand for rental properties. Rent prices are soaring and are not expected to ease up next year. This is sending investors flooding into the Florida property market, keen to make a handsome profit off of buy-to-let properties.

If you’re interested in capitalising on thriving rental markets in the US, get in touch to discuss available properties.

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