A new study from RENTCafe reveals that more young families chose to rent instead of buy in the 10-year span from 2006-2016. The number of families with minor children that owned a home decreased by 3.6 million during this time, while rentals for this group increased by 1.9 million.
Likely culprits include rising home prices, tough lending rules and a lack of entry-level homes in the marketplace.
HousingWire's Jessica Guerin writes:
“The rise of renting and the decline of ownership among families with children is not only confirmed in all 30 largest U.S. metropolitan areas, but it’s also very prominent in many of them,” RENTCafé wrote. “At the confluence of forces that prevent families from buying homes and compel them to rent, the cost of housing is probably the strongest force.”
Southern cities saw the highest increase in families that were living in rentals, according to the report, with Atlanta, Phoenix, Houston, Miami and Charlotte, North Carolina topping the list. The greater Charlotte area experienced the most significant jump with a 73% increase in families with kids who were renting their home. The Atlanta area came in second with a 51% jump in the number of renting families.
The metro areas that lost the most homeowner families were Detroit, Miami, Las Vegas, Los Angeles and Riverside, California, which all registered decreases of more than 20%, according to the report.
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