A decade after the housing bust upended the lives of millions of Americans, more U.S. households are headed by renters than at any point since at least 1965, according to a Pew Research Center analysis of Census Bureau housing data.
The total number of households in the United States grew by 7.6 million between 2006 and 2016. But over the same period, the number of households headed by owners remained relatively flat, in part because of the lingering effects of the housing crisis.
Meanwhile, the number of households renting their home increased significantly during that span, as did the share, which rose from 31.2% of households in 2006 to 36.6% in 2016. The currentrenting level exceeds the recent high of 36.2% set in 1986 and 1988 and approaches the rate of 37.0% in 1965.
Certain demographic groups – such as young adults, nonwhites and the lesser educated – have historically been more likely to rent than others, and rental rates have increased among these groups over the past decade. However, rental rates have also increased among some groups thathave traditionally been less likely to rent, including whites and middle-aged adults.
Young adults – those younger than 35 – continue to be the most likely of all age groups to rent. In 2016, 65% of households headed by people younger than 35 were renting, up from 57% in 2006. Rental rates have also risen notably among those ages 35 to 44. In 2016, about four-in-ten (41%) households headed by someone in this age range were renting, up from 31% in 2006.
Rental rates also went up among households headed by someone ages 45 to 64, rising from 22% of households in 2006 to 28% in 2016. But among the oldest Americans – those 65 or older – the rental rate remained steady at around 20%.
Black and Hispanic households continue to be about twice as likely as white households to rent their homes. In 2016, 58% of black household heads and 54% of Hispanic household heads were renting their homes, compared with 28% of whites. But all major racial and ethnic groups were more likely to rent in 2016 than a decade earlier.
The movement toward renting has also occurred across all levels of educational attainment. From 2006 to 2016, rental rates increased among households headed by someone with less than a high school degree, as well as among those headed by a college graduate.
Even so, college graduates are the least likely group to be renters.In 2016, 29% of college-educated household heads were renters, compared with 38% of household heads with a high school degree only or some college experience and 52% of household heads who did not finish high school.
The increase in U.S. renters over the past decade does not necessarily mean that homeownership is undesirable to today’s renters. Indeed, in a 2016 Pew Research Center survey, 72% of renters said they would like to buy a house at some point. About two-thirds of renters in the same survey (65%) said they currently rent as a result of circ*mstances, compared with 32% who said they rent as a matter of choice. When asked about the specific reasons why they rent, a majority of renters, especially nonwhites, cited financial reasons.
Anthony Cilluffo is a former research analyst who focused on social and demographic trends at Pew Research Center.
A.W. Geiger is a former associate digital producer and writer for Pew Research Center.
Richard Fry is a senior researcher focusing on economics and education at Pew Research Center.
FAQs
If you're wondering, "what percent of americans rent", you've come to the right place. Today we'll show you how many americans rent. Did you know that 36% of American households currently rent their home?
Are homeowners 40 times wealthier than renters? ›
“A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.” Along with these wealth gains, homeowners also saw their debt drop by 21% over the last decade, the report shows.
What percentage of Americans own a home vs rent? ›
65.8% of the U.S. population lives in a home they own, and 34.2% rent.
Is rent increasing in the US? ›
The price of asking rents increased by 0.6% from April to May, the report shows. It's the same increase as the one from March to April. The May increase is slightly lower than the typical monthly increase of 0.7% averaged over past Mays from 2016 to 2019.
What percent of US homes are owned by landlords? ›
Of the approximately 50 million rental housing units in the United States, around 41% of the rental units are owned by mom and pop landlords, also known as individual investor landlords. That means approximately 20.5 million units are overseen by mom and pop landlords.
Why are more people renting? ›
High cost of homeownership and a tight housing market drive demand for rental properties.
Do millionaires rent or buy homes? ›
The number of millionaire renters has tripled in the past five years. More and more millionaires are stepping on the everyman's corner and renting apartments rather than putting down roots and money to become homeowners.
Do most millionaires own their homes? ›
The overwhelming majority of millionaires own real estate, making it by far the most popular alternative asset class. That includes their own home, second homes, investment properties, and fractional ownership of investment properties through partners or programs like Arrived Homes and Roofstock One.
Why real estate creates 90% of millionaires? ›
Because of the many tax benefits, real estate investors often end up paying less taxes overall even as they are bringing in more income. This is why many millionaires invest in real estate. Not only does it make you money, but it allows you to keep a lot more of the money you make.
What percentage of homeowners have no mortgage? ›
After California comes New York at 1.7 million and Pennsylvania at 1.5 million. Yet no-mortgage owners in California are only 33% of all homeowners – and only four places have a smaller share: D.C. at 24%, Maryland at 28% and Colorado and Utah at 30%.
64% of Americans own real estate. 35% of the American population does not own their own homes. Homeownership rates have increased to nearly 65% in the US since the 1940s.
What percentage of the US population owns their own home without a mortgage? ›
The country with the highest free-and-clear homeownership rate in the list above was Lithuania at 83%. In the U.S., the free-and-clear homeownership rate was 23%. If free-and-clear homeownership is the American Dream, then apparently Lithuania and many other countries are living the American Dream.
Is rent causing inflation? ›
Rent is the 'largest contributor' to inflation. See where it is going up (or down) Rental prices were by far the “largest contributor” to the rise in inflation on an annual basis in March, according to data released by the Bureau of Labor Statistics.
What city has the highest rent increase in the US? ›
Here are the 10 metros where asking rents are rising fastest.
- Oklahoma City: +24.1 percent.
- Pittsburgh: +20 percent.
- Indianapolis: +17.9 percent.
- Louisville: +17.5 percent.
- Nashville: +17 percent.
- Cincinatti: +16.5 percent.
- Raleigh: +16.4 percent.
- New York: +15.4 percent.
Reasons why rent is so high range from general inflation to fewer housing units being constructed in recent years to plain, old high demand for housing — and much more. Read on for a closer look at why rent is so expensive in the U.S.
Who is the largest landlord in US? ›
The nation's largest private landowners are the Emmerson family in California who own over 2.4 million acres. The bulk of that land is dedicated to timber in Northern California. But the most headline-worthy transaction of 2022 was the Four Sixes Ranch in Texas.
Who owns the most housing in the US? ›
Leading apartment owners in the U.S. 2022, by units owned
Starwood Capital Group, which was the largest owner in 2022 with 115,000 units, is a private investment firm headquartered in Miami, Florida.
Who owns the most houses in the US? ›
John Malone is the largest private landowner in the United States. Malone made his fortune as a media tycoon, building the company Tele-Communications, Inc, or TCI, and acting as its CEO before selling it to AT&T for $50 billion in 1999.
What is the homeownership rate in the US over time? ›
Since 1960 the homeownership rate has remained in the 61- to 65-percent range. After slow growth from 1960 to 1980, the rate fell to 63.9 percent in 1990. Part of the decline between the 1980 and 1990 censuses can be explained by the undercount adjustment, a first-time ever adjustment by the Census Bureau.
What percentage of the US population lives in apartments? ›
Apartment and condo living is only preferred by 8 percent of the population, yet two in 10 Americans (17 percent) live in an apartment or condo.
Renter Demographics
26% of renting householders are married couples. 42.5% of renters are single women; 31.5% are single men. $36,000 is the median annual household income among renting households. 51% of renters are white.
Young adults – those younger than 35 – continue to be the most likely of all age groups to rent. In 2016, 65% of households headed by people younger than 35 were renting, up from 57% in 2006. Rental rates have also risen notably among those ages 35 to 44. In 2016, about four-in-ten (41%) households headed by someone in this age range were renting, up from 31% in 2006.
Black and Hispanic households continue to be about twice as likely as white households to rent their homes. In 2016, 58% of black household heads and 54% of Hispanic household heads were renting their homes, compared with 28% of whites. But all major racial and ethnic groups were more likely to rent in 2016 than a decade earlier.
Even so, college graduates are the least likely group to be renters.In 2016, 29% of college-educated household heads were renters, compared with 38% of household heads with a high school degree only or some college experience and 52% of household heads who did not finish high school.
