Posted July 16, 2015 by RentJungleIn today's market, choosing whether to rent or buy can be a difficult decision. There are many factors that come into play when choosing your new home. Will you stay in the area, what is your financial status or how much room do you need are all factors that you think about when choosing whether to rent or buy. However, the trend that is continuing this year and throughout the past 10 years is to rent.
The Joint Center for Housing Studies at Harvard University has been gathering data about this trend for the past few years. 2014 is the 10th consecutive year for rental household growth. Harvard University has calculated that the rental household growth is increasing at an average of 900,000 renter households per year. This trend has stayed constant from 2010-2014.
Homeownership has feel nearly 64.5% in the past year. This significant decrease has wiped out all of the steady increase from the past two decades. This is the 10th consecutive year that the amount of homeowners in the United States has fallen. This trend seems to be continuing as the rental growth continues to increase at a steady rate.
Harvard also wanted to evaluate why the rental trend was increasing so much in the past few years. This increase is caused in part to the rental demand of younger adults. Adults 35 and over have contributed to 76% of renter household growth in the past few years. This means that the younger adult demographic makes up 60% of all renters in the United States.
All of these factors show a steady increase for the foreseeable future in multi family housing rentals. As millennials start to make their own future, they will contribute to be the largest percentage of the rental market. These findings will also be a huge factor in construction for the future. If the demand is still high, multi family units will continue to be built around the United States. This could cause a change in the rental market prices and demand as we see where the future takes us. You can learn more about the Harvard study by visiting FreddieMac.
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