Realtor.com Identifies Renter Trends

(Image courtesy of MART PRODUCTION/pexels.com)

Realtor.com, Austin, Texas, released a new report analyzing the current renter populations, and finding that there are three distinct but overlapping groups: young renters, family renters and long-term renters.

Combined, they make up more than 80% of total renter households in the U.S., but have different needs and preferences.

Young renters make up roughly 31.9% of renter households, and are concentrated in affordable, midsize inland metros. The average young renter household is headed by a 28-year-old, with a household size of 2 people in a 2 bedroom, and an average annual income of $65,000.

For younger renter households, 34% are single and 10% live in arrangements such as with roommates.

In general, markets with high young renter shares show lower affordability stress, higher shares of single-person households and lower rates of doubled-up households.

The top metros by young renter share include Colorado Springs, Colo., (45.7%), Austin, Texas, (44.6%) and Denver (43.5%). The top spots also tend to offer dynamic job markets.

Family renters are 44.3% of all renter households. A family renter household is one headed by a married couple or a parent living with their children. A typical family renter household is headed by a 42-year-old adult, with a family size of three people in a two-bedroom unit, and an income of $68,000 annually. The majority–75.2%–include children, and 6.5% are multigenerational.

The top metros by renter share include Stockton, Calif., at 63.3%, Riverside, Calif., at 61.7% and McAllen, Texas, at 61%.

The third group is long-term renters, representing 36.1% of all renter households. They are defined as a household that has remained in the same rental unit for five or more years. A typical long-term renting household is headed by a 55-year-old adult, with a household of two people in two bedrooms and a median household income of $48,500.

Some choose to stay, and some have no other options, the report stated.

The top 10 metros by long-term renter share include New York, at 53.3%, Los Angeles, Calif., at 49.6%, and Oxnard, Calif., at 49.5%.

These metros fall into two categories: anchor cities that usually have a history of rent control and stabilization, and renters priced out of those cities into secondary markets.