According to a new report from Redfin, the number of renter households in America reached a record high of 45.2 million in the second quarter of 2024, representing a year-over-year increase of 1.9%. This growth rate is more than three times faster than that seen among homeowner households, which grew by only 0.6% to reach a record high of 86.3 million.
Redfin’s data shows that this is the second-fastest pace at which renter households have grown since 2021, while homeowner household growth was at its slowest pace since 2019. The largest annual gain for renters was seen in Q1 of that year when there was an increaseof up to2.8%.
One factor contributing to this trend is the difference in monthly housing costs between renting and owning homes.In fact,the average asking rent has risen by23% comparedto pre-pandemic levels.However,mortgage rates have increased even more significantlyby90%due to pandemic-related changes.
Senior economist Sheharyar Bokhari from Redfin notes that although both renting and buying homes have become increasingly expensive over recent years,the affordability crisis may be less severe for renters.This could be attributedtothe construction boomin apartments across America,satisfyingthe strong demandfromrenters.Bokhari suggests leaders should take noteofthis lessonwhen considering ways togive homebuyersmore affordable options;increasedhousing supply can help mitigate rapid price increases.
