New research shows that the largest rise has been in Memphis, Las Vegas and Honolulu.
The majority of people rent instead of own in 29 of the 50 largest cities, according to the latest study from real estate firm Zillow.
Miami, New York and Boston have the greatest share of renter households. Almost 70% of all households in Miami and New York, and 65% of all households in Boston, rent. The renter rate in Miami rose 6% over the past 10 years.
The median rent across the US is $1,440 per month, up 1.3% over the past year.
The study also points out that more than a decade ago during the recession, millions of homeowners were foreclosed upon and many have yet to purchase a home again. Numerous households became renters at the same time that tight mortgage lending standards and a weak labour market made it harder for young adults to become first time owners.
It explains that even as homeownership slowly climbs back today, rapidly rising home values often make it difficult for younger renters to save enough break into the housing market, to begin with.
In 2006 some 31% of all households rented and now that has increased to 36%, higher than the 33% recorded in 2000 before the housing boom.
In Memphis, some 56% of all households are rented, up 11% since 2006. The renter rate in Las Vegas is just over 47%, up from 38% 10 years prior.
It suggests that part of the reason may be that home values across the country are rising over 8% annually, with some markets reporting double-digit home value appreciation. The median home value in San Jose, for example, have increased by 27% over the past year, with 43% of all households renting, up about 5% since 2006.
‘The share of households that rent surged in the wake of the recession, as millions of families were foreclosed upon and younger adults either chose to or had no choice but to rent for longer,’ said Zillow senior economist Aaron Terrazas.
Renting remains more common years after the recession ended and after a historically long national economic expansion. The homeownership rate is slowly rising…