As
the
cost
of
buying
a
home
has
risen
faster
than
the
cost
of
renting
for
the
past
four
quarters,
it’s
no
surprise
that
renter
households
are
witnessing
more
growth
than
their
owner-occupied
counterparts.

The
surge
in

renter
households
is
outpacing
the
growth
of
homeowners
in
the
U.S.,
as
there
are
now
a
record
45.6
million
renters.
That
was
up
2.7%
year
over
year,
according
to

a
new

Redfin
report.

This
rate
of
growth
is
three
times
faster
than
the
0.9%
increase
in
homeowner
households,
which
now
total
86.9
million.
Notably,
the
2.7%
increase
represents
1.18
million
additional
renter
households
and
marks
the
second-fastest
yearly
pace
of
growth
since
2015.

The
median
asking
rent
was
up
0.6%
year
over
year
in
September,
but
rents
have
remained
mostly
flat
for
the
past
two
years.
Rents
have
become
more
affordable
as

wages
have
gone
up
by
about
4%.

On
the
other
hand,

home
prices
climbed
6%
year
over
year
in
September
and
have
jumped
more
than
10%
in
the
past
two
years,
according
to
Redfin
And
only
2.5%
of
U.S.
homes
changed
hands
in
the
first
eight
months
of
2024
—
the
lowest
rate
in
decades.

Redfin
cited
the

boom
in
multifamily
construction
over
the
past
few
years
as
one
reason
why
rents
have
remained
stable.
The
U.S.
added
new
multifamily
units
at
an
annual
rate
of
647,000
as
of
the
third
quarter
—
the
fastest
pace
on
record
dating
back
to
1994.

The
surge
in
multifamily
construction
addressed
demand
in
certain
regions,
particularly
in
the
Sun
Belt
states,
but
builders
are
now
slowing
down.
In
September,

permits
for
new
multifamily
units
fell
16%
year
over
year
and
were
47%
below
the
peak
reached
in
February
2023,
which
was
the
highest
level
in
nearly
40
years.

More
than
one-third
(34.4%)
of
households
in
the
U.S.
are
renter
households
—
a
figure
that
has
remained
flat
for
the
past
three
quarters.

The
rentership
share
is
highest
in
expensive
metro
areas
in
California
and
New
York
City.
San
Jose
has
a
rentership
rate
of
52%,
the
highest
among
the
75
largest
U.S.
metros.
It’s
followed
by
Los
Angeles
(50.8%),
New
York
(49.1%),
San
Diego
(48%),
and
Fresno,
California
(47.4%).

Rentership
rates
in
more
affordable
metros
are
lower.
In
Cape
Coral,
Florida,
21.8%
of
households
are
renters.
It
is
followed
by
Charleston,
South
Carolina
(23.7%),
Columbia,
South
Carolina
(24.5%),
Allentown,
Pennsylvania
(27.2%)
and
Detroit
(28.2%).

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