World Places and News

American dream of homeownership declines in Bay Area as more people rent

American dream of homeownership declines in Bay Area as more people rent

American dream of homeownership declines in Bay Area as more people rent
February 07
19:36 2018



Over the last decade, the total U.S. population gained approximately 23.7 million people. At the same time, the number of renters increased by 23 million, while homeowner numbers grew by less than 700,000.

Nowhere is this trend more noticeable than in the nation’s cities. According to a Market Snapshot prepared by RENTCafe, “Almost a quarter of the 100 largest US cities shifted from owner- to renter-majority between 2006 and 2016.”

That means the total number of major cities where renters outnumber owners almost doubled, as 42 major American cities became renter dominated over that ten year span.

Method 

RENTCafe used the American Community Survey archives from the U.S. Census Bureau’s public database to compare “the number of people living in renter- and owner-occupied housing units in 2006 and 2016.”

The breakdown of the 22 cities mentioned appears in the gallery above.

Local implications

The numbers highlight Bay Area cities east, west and south. As of 2016:

  • Fremont has the 6th highest percentage increase in renter share in the nation: 31% since 2006.
  • Oakland has the highest renter-over-owner population of the Bay Area cities studied:  58.9 percent of Oakland residents are renters. 
  • San Francisco is 56.3 percent renter, and this is 4.2 increase in its renter share since 2006.
  • Though still majority owner, San Jose saw the biggest net gain in the renting population. More than 96,800 people have become renters since 2006. 

Future is dire

If you pin homeownership as a staple of building wealth, or at least security, you might be alarmed at other data uncovered in these figures. Namely, the renting is outpacing owning in 97 of the 100 cities studied.

The 22 cities listed above are only the tip of the iceberg. In most other large cities, although the renter population still falls away from the number of homeowners, the ratio has gone through a dramatic change. In fact, apart from Anchorage, Ala., Irving, Tex., and Winston-Salem, N.C., all large U.S. cities of the top 100 list have shifted in this direction.



American Dream, only a dream?

Economists have theories about this trend: low inventory of houses for sale means slow growth of new owners. Higher qualifications for home loans means more renters. Foreign investment is inflating the median home price beyond the median income in many cities. Younger people may be less interested in buying.

Whatever the cause, the idea of the American dream seems to be in flux. Indeed, if that dream is to own a home, then that dream may not ever be a reality for those Americans living in the nation’s largest cities.

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert



Source link

Share

About Author

webmaster

webmaster

Related Articles

7000’s PLR eBooks, Audios, Videos Only $1

——>> Find Best Offers



Site Statistics

  • Users online: 1 
  • Visitors today : 733
  • Page views today : 3,820
  • Total visitors : 158,010
  • Total page view: 1,423,240