NEW YORK, Oct. 9, 2019 /PRNewswire/ -- After a decade's
worth of demographic and economic shifts, the U.S. has seen
significant change in the balance between renters and homeowners
according to a new ValuePenguin.com report. Most notably, the study
found that millennial homeownership rates fell 20% in the past
decade.
As the increase in renter households continue to outpace the
growth of homeowners across all generations, the study also found
that renters have become more likely to rent types of housing that
have historically been far more popular among homeowners.
Key Findings:
- Millennials are less likely to own a home than to rent or
stay with parents. From 2009 to 2016, there was a gradual drop
in the number of households that owned a home and were headed by
someone under age 35. Millennial householders accounted for over
12% of all U.S. homeowners in 2009, but fell year after year to a
low of 9.8% by 2016. Within the millennial age group, the number of
homeowner households fell by 18.5% over eight years.
- The Millennial homeownership trend started to reverse in
2017: In 2017, millennials increased their share of the total
homeowner population for the first time since 2009. 2017 was also
the first year that the total number of millennial renter
households declined, following years of slight but steady increase
to around 15.2 million in 2016. Still, nearly 67% of all millennial
households were renters in the final year of our analysis.
- Across All Generations, More Americans Are Renting:
Between 2009 and 2017, the population of American households that
pay rent has gone up by 15% to almost 43 million. In the same
period, the number of homeowners increased by just 0.7% to 75.8
million. The declining trend in homeownership and increasing trend
in renters combined to cause a steady drop in the ratio of owners
to renters. While there were more than two homeowner households for
every renter in 2009, that ratio fell to 1.76 by 2017.
- Single-Family Houses Becoming Popular Among Renters Too:
American households have always preferred single-family homes by a
vast majority, but a growing number appear to be renting rather
than buying such homes. Besides supporting the idea that more U.S.
households are choosing to rent in general, this trend suggests
that people who need single-family houses — usually families — are
becoming more likely to rent than buy.
ValuePenguin.com sourced data from the Census Bureau's American
Community Survey (ACS) to explore how renting and home buying have
shifted across age groups and structures. Research analyst
Chris Moon, who authored the study,
looked at 5 year estimates from 2013-2017 for the purpose of this
analysis.
To view the full report, visit:
https://www.valuepenguin.com/changing-homeownership-trends
About ValuePenguin.com: ValuePenguin.com, part of
LendingTree (NASDAQ: TREE), is a personal finance website that
conducts in-depth research and provides objective analysis to help
guide consumers to the best financial decisions. ValuePenguin
focuses on value, assessing whether the return of a particular
decision is worth the cost or risk of that option, and how this
stacks up with the other possible choices they may have. For more
information, please visit www.valuepenguin.com, like our Facebook
page or follow us on Twitter @ValuePenguin.
Media Contact:
Divya
Sangam (Ms.)
646 693 8445
Divya@Valuepenguin.com
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SOURCE ValuePenguin.com