REAL ESTATE NEWS

Report predicts power shift from homeowners to renters

Jun 15, 2015, 6:31 AM | Updated: Mar 4, 2016, 5:46 am

The renter population is expected to only get bigger in the next 15 years and will likely exceed new homeowners by a significant number, according to a newly released report by the Urban Institute, “Headship and Homeownership: What Does the Future Hold?”

Between 2010 and 2030 – the year millennials are to reach peak homebuying age – new renters will exceed new homeowners by 4 million, according to the report. Broken out, the report estimates 13 million new renters to 9 million homeowners by 2030.

“The rapid growth of the renter population will create significant demand for new rental housing construction and encourage a shift of owner-occupied dwellings to rentals,” according to the report. “In the next 15 years, many more rental households will form because of the size and ethnic composition of the millennial generation. Rental housing vacancy rates are already low, and rents are rising. Single-family homes are shifting to renter occupancy throughout the nation, and this trend is likely to continue.”

Still, the total number of homeowners are expected to see growth in the next 15 years due to net household formation, the report notes. In particular, the rate of Hispanics in home ownership is expected to make gains, from 47.3 percent in 2010 to 48.2 percent by 2030.

Household formations are mostly expected to be driven among nonwhite populations from 2010 to 2020 with 77 percent of new households expected to be nonwhite, according to the report. In the following 10 years, that growth is expected to be at 88 percent. Also, household formation growth also is expected to be driven by a growth among senior households, those who are 65 or older.

Real Estate News

Kipp Robertson

Home prices around Seattle may be directly linked with transit

Trying to find a home for what passes as a reasonable price in King County is proving to be more and more difficult.

8 years ago

(AP file)...

Tom Kelly

Living longer: How to handle the mortgage

Increased life expectancy brings many unavoidable consequences and concerns as the risk of running out of money in our lifetime has increased dramatically.

8 years ago

tiny house...

Tom Kelly

How to build, buy and finance a ‘tiny’ home

Everybody knows conventional homes are expensive, especially in the Puget Sound region. Are tiny homes a realistic alternative?

8 years ago

No Author

Can you throw good money after bad in a hot market?

What does it mean to throw good money after bad in real estate? What about the idea “get in the door at any cost” now while you can?

8 years ago

home values ridgway...

Tom Kelly

The effect of crime – and celebrity – on home values

Is there ever an uptick in value following a celebrity crime? Suicide? Who typically buys a "stigmatized" home and how does crime affect home values?

8 years ago

seattle housing, rental, home buyers...

Kipp Robertson

Seattle is getting more interest from foreign investors

Figures from a Chinese website shows property buying inquires from foreign investors shot up in August compared to August 2015. Meanwhile, inquiries in Vancouver, B.C. dropped 81 percent in August.

8 years ago

Report predicts power shift from homeowners to renters