Renters who choose the apartment lifestyle even though they can afford to buy have been a boon to multifamily owners and developers during the last decade. But how much of an impact have these renters-by-choice on the apartment market? You might be surprised.
A study published by RENTCafe found that high-income Americans make up the fastest-growing segment of U.S. renters. According to the study, the number of these renters has increased by an impressive 175 percent during the last 10 years. Their growth has outpaced even high-income homeowners during this period.
RENTCafe found that the number of Americans who earn $150,000 or more a year and choose to rent has increased by 1.35 million from 2007 through 2017.
Multifamily developers know this. It’s one of the reasons behind this sector’s growth during the last 10 years. There’s a reason why developers are so eager to build new apartment towers in the centers of cities like Chicago, Kansas City, Minneapolis and Milwaukee. It’s where high-income renters, those who choose to rent instead of buy, want to live.
Consider this number: RENTCafe, citing U.S. Census numbers, says that out of the 43.3 million people who rent in the United States, 2.1 million earn $150,000 or more. In 2007, only 774,000 renters fell into the high-income bracket.
