NEW YORK, March 8, 2016 /PRNewswire/ -- The renter
population grew in both central city and suburban areas while more
renters struggled to find affordable housing in the 11 largest
metropolitan areas in the U.S., according to the newly-released
NYU Furman Center/Capital One National Affordable Rental Housing
Landscape report.
The Landscape examined rental housing affordability trends in
the nation's largest metropolitan areas, including Atlanta, Boston, Chicago, Dallas, Houston, Los
Angeles, Miami,
New York City, Philadelphia, Washington, D.C. and San Francisco from 2006 to 2014 and identified
the impact these trends had as the renter population increased
while affordable housing rates continued to decline. "Affordable"
rent should comprise less than 30 percent of a household's
income.
In all 11 metro areas, both the renter population and housing
stock grew during this period. By the end of the period, the number
and proportion of people renting had increased—both within central
cities and in the surrounding suburbs. The report also showed a gap
between growing demand and supply. From 2006 to 2014, the renter
population grew faster than the stock of rental units in the 11
largest metro areas, and in metro areas nationwide, pushing the
average rental household size up and putting pressure on the
affordability of rental housing.
"This study shows that affordable housing is becoming
increasingly out of reach for many low- and even moderate-income
renters in the nation's largest metro areas—both in the central
cities and their surrounding suburbs," said Ingrid
Gould Ellen, Faculty Director of the NYU Furman Center. "In
all of the metro areas we studied, the renter population grew
faster than the housing stock. As supply did not keep pace with
this growth in demand, vacancy rates decreased, the average number
of people living in a rental unit increased, and, in most areas,
rents rose."
On average, in metro areas nationwide, rents rose faster than
incomes. In nine of the 11 largest U.S. metro areas, the typical
renter could afford fewer than 40 percent of the units on the
market in the previous year. In the Miami, New York
City, and Los Angeles metro
areas, the typical renter could afford fewer than 25 percent of
recent units.
Seven of the 11 largest metro areas also became less affordable
to the typical renter between 2006 and 2014. The seven metro areas
are Atlanta, Dallas, Los
Angeles, Miami,
New York City, San Francisco and Washington, D.C.
"Millions of people nationwide are struggling with the gap in
affordable housing, leaving many rent-burdened as the population of
renters continues to increase," said Laura
Bailey, Managing Vice President, Community Finance, Capital
One, one of the nation's top 10 affordable housing lenders. "At
Capital One, we're committed to working with the nation's leading
housing developers and investing in high-impact communities to
respond to the needs of our nation's most vulnerable residents. We
know that our investment in affordable rental housing needs to go
beyond just financing construction – it requires creating
innovative solutions and strong collaboration among public and
private sectors, which creates a ripple effect in expanding
economic opportunities within our local communities."
The renter population is increasing throughout
metropolitan areas
The rental population is booming –
in 2014, there were nearly 22 million more renters in metro areas
in the U.S. than in 2006.
- In all of the metropolitan areas, the renter population grew in
both the principal cities and the surrounding suburbs between 2006
and 2014, consistent with metro areas nationwide.
- In 2014, among the 11 largest metro areas, the majority of
central-city residents were renters everywhere except the
Houston and Philadelphia metro areas.
Affordable housing out of reach for many
In
the majority of the 11 metropolitan areas, the number of rental
units that were affordable to the typical renter fell between 2006
and 2014.
- Of the 11 largest U.S. metro areas, the Washington, D.C. metro area was the least
affordable to the typical U.S. renter household in 2014, followed
by the San Francisco and
Los Angeles metro areas.
- Dallas and Houston metro areas were the most affordable
to the median U.S. renter household.
More renters lived in single-family homes
While
single-family homes are often assumed to be owner-occupied, a
sizable and growing portion of renters in the 11 metro areas lived
in single-family units in 2014.
- In all 11 metros, and in metros nationwide, a greater share of
renter households lived in single-family homes in 2014 than did in
2006. Atlanta, Philadelphia and Houston were the top three cities with the
most renters living in single-family homes.
- In every metro except for Boston and New York
City, more than one in five renters lived in a single-family
home in 2014.
Considerable gap in supply and demand
The
mismatched growth in demand and supply for rental units pushed
rental vacancy rates down.
- In the 11 largest metros, and in metros nationwide, the renter
population grew more quickly than the number of rental housing
units between 2006 and 2014, putting pressure on rental
households.
Fewer rental units were affordable to renter households in
the majority of metro areas
Incomes lagged well behind
rents in the majority of the 11 metropolitan areas.
- Seven out of the 11 largest metro areas became less affordable
to the typical renter between 2006 and 2014.
- In nine of the 11 largest metros, the typical renter in 2014
could have afforded less than 40 percent of recently available
units.
- In 2014, one quarter of renters in seven of the 11 largest
metro areas, and in metro areas nationwide, were severely rent
burdened, facing rents equal to at least half of their income.
The overwhelming majority of low-income renters were
severely rent-burdened
In all 11 metro areas,
low-income renters faced much more significant affordability
challenges. Rising rents were not confined to central cities: in
all but one of the metro areas studied, rents rose in the suburbs
as well.
- In eight of the 11 metros, at least a quarter of
moderate-income renters—those earning between the 25th and 50th
percentile income among renters in the metro area—faced severe rent
burden.
- In all 11 metro areas, and in metro areas nationwide, well over
half of low-income renters, earning less than the 25th percentile
renter income in their metro area, faced rents at or above half of
their household income.
Average household size increased
In all 11
metro areas, the average number of people in each rental household
rose.
- Metro area units that were owner-occupied in 2005 but
renter-occupied in 2013 had, on average, about 2.8 bedrooms, higher
than the average of 2.1 bedrooms among all rental units in
2013.
The complete NYU Furman Center and Capital One National
Affordable Rental Housing Landscape and additional information are
available online
at www.furmancenter.org/NationalRentalLandscape.
U.S. Metropolitan Areas – Rental Facts at a
Glance
- Between 2006 and 2014, the renter population grew while more
and more renters faced difficulty finding affordable
housing.
- The number and share of renters increased in both the
central cities and the surrounding suburbs of all 11 metro areas,
and in metro areas nationwide, between 2006 and 2014.
- The rental housing stock grew much faster than the ownership
stock in all 11 metro areas and in metro areas nationwide between
2006 and 2014.
- The share of renters living in single-family homes grew
between 2006 and 2014 in the 11 largest metro areas in the U.S. and
in metro areas nationwide.
- In six of the 11 largest metro areas, and in metro areas
nationwide, the increase in the number of single-family rental
units between 2006 and 2014 was larger than the increase in
multifamily rental units.
- Between 2006 and 2014, the renter population grew faster
than the stock of rental units in the 11 largest metro areas, and
in metro areas nationwide, pushing the average rental household
size up and putting pressure on the affordability of rental
housing.
- The rental vacancy rate dropped in 10 of the 11 largest
metro areas, and in metro areas nationwide, between 2006 and
2014.
- In 10 of the 11 largest metro areas, and in metro areas
nationwide, the median gross rent rose between 2006 and 2014, both
in the central cities and the surrounding suburbs.
- In 2014, the overwhelming majority of low-income renters
were severely rent burdened in the 11 largest metro areas and in
metro areas nationwide.
- In 2014, rental units that had been on the market within the
past year in the 11 largest metro areas and in metro areas
nationwide had higher rents and were less affordable than units
which had not been recently available, raising the prospect of
greater affordability challenges yet to come.
About the NYU Furman/Capital One National Affordable Rental
Housing Landscape Research Study
The study commissioned by
Capital One and conducted by the NYU Furman Center, analyzes rental
housing affordability trends in the 11 largest metropolitan areas
in the U.S. This study delves more deeply into recent trends in
rent levels, rent burdens, affordable units, and the gap between
the number of low-income households in need of affordable housing
and the number of existing affordable units. Data analysis is based
on data from the U.S. Census Bureau, including data from
the American Community Survey from 2006 through 2014, and
uses geographic information from the Missouri Census Data
Center.
About the NYU Furman Center
The NYU Furman Center
advances research and debate on housing, neighborhoods, and urban
policy. It is a joint center of the New York University School of Law and
the Robert F. Wagner Graduate School of Public Service. Learn
more at furmancenter.org and @FurmanCenterNYU.
About Capital One
Capital One Financial Corporation,
headquartered in McLean, Virginia, is a Fortune 500 company with more
than 900 branch locations primarily in New York, New
Jersey, Texas, Louisiana, Maryland, Virginia, and the District of
Columbia. Its subsidiaries, which
include Capital One, N.A., and Capital One
Bank (USA), N. A., offer a
broad spectrum of financial products and services to consumers,
small businesses and commercial clients. We apply the same
principles of innovation, collaboration and empowerment in our
commitment to our communities across the country that we do in our
business. We recognize that helping to build strong and healthy
communities – good places to work, good places to do business and
good places to raise families – benefits us all and we are proud to
support this and other community initiatives. Capital One
recognizes that housing plays a crucial part in neighborhood
revitalization and economic recovery and, in 2015 alone,
provided almost $1.5
billion in affordable housing loans. To learn more,
visit http://www.capitaloneinvestingforgood.com/.
Infographic -
http://photos.prnewswire.com/prnh/20160307/341446-INFO
Logo - http://photos.prnewswire.com/prnh/20160307/341440LOGO
Logo - http://photos.prnewswire.com/prnh/20141030/155590LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nyu-furman-center-and-capital-one-report-renter-population-growing-in-nations-largest-metro-areas-while-more-renters-struggle-to-find-affordable-housing-300232584.html
SOURCE Capital One Financial Corporation