In the past eight years, peer-funded lending has gained robust growth. Meanwhile, the majority of borrowers of peer lending has shifted from renters to homeowners. National Association of Home Builders' staffer Michael Neal probes into the phenomenon and tracks down the changing trend in a recent blog post. Neal writes,
"An earlier post illustrated that homeowners account for 60% of all loans funded through peer-to-peer lending site LendingClub.com. However, homeowners did not always account for the majority of borrowers. In 2007, the first year of data, homeowners represented 43% of all funded loan amounts and the rest of the loans were obtained by non-homeowners. The vast majority of non-homeowners, 99.9% are renters. The other 0.1% reported their homeownership status as “other” or “none”.
By 2010, more than half of all borrowers were considered homeowners. The share of all borrowers considered homeowners continued to rise until 2013 when it reached 62%. Since 2013, the proportion of borrowers considered homeowners has ticked down slightly, but still accounts for approximately 3 out of every 5 loans."