According to a new report, renters are the majority of the population in main metro cities now. Owning a home can be expensive in cities, thus cities usually have more renters than suburban areas.
A report by New York University’s Furman Center and Capital One Financial Corp., announced a noticeable shift in city renters. Demand for apartments keeps rising, inadequate supply drives vacancy rates to fall, rents rise, renters then struggle with housing costs.
Entry-level and middle-income jobs makes young people want to rent apartments. Texas, Dallas, and Denver are all examples. Even a new project manager in Houston chose to rent an apartment because he didn’t want to make a rush decision about buying a house.
So what's the reason for all of this? Well, low incomes and and a lack of savings are among the top factors for making the decision to rent as opposed to buying. Further more, the down payment required for buying a house can be a shock factor when compared to paying rent. Miami has become the largest renters markets with 65% of the population renting. NYC is no longer the leader; they have seen their renter’s percentage declining since 1970. Philadelphia has the smallest renter percentage with 64% as homeowners and 36% as renters. It's still to be seen if the percentage of renters will continue to rise in most cities.