Owning a home has long been considered part of the American dream. But increasingly, people are choosing to rent apartments instead of buying homes.
The latest research from RENTCafe provides more evidence of this. According to the company, renters have become the majority in 22 of the largest 100 U.S. cities by the end of 2016.
Many of these big cities were in the Midwest. This includes Toledo, Ohio; Memphis; Columbus, Ohio; Detroit; Cleveland; St. Louis; Minneapolis; and Chicago.
In certain Midwest cities, the renter majority has grown by a significant amount. In Memphis, the renter share of the population stood at 56.6 percent as of the end of 2016. In 2006, renters made up of 44.6 percent of the city’s population. The city tied with Santa Ana, California, for having the largest renter share of its population.
Cleveland has seen its renter population grow, too. RENTCafe reported that in 2006, renters made up 48.2 percent of the population here. As of the end of 2016, they made up 56 percent of the population.
The numbers show that this trend is gaining strength. RENTCafe reported that the growth in renters outpaced the growth of owners in 97 of the largest 100 cities in the United States from 2006 through 2016.
What’s behind this? There are plenty of reasons. A growing number of people want to live in the middle of urban environments where they can walk to public transportation, restaurants, shops and entertainment. For these people, renting an apartment makes sense. The number of renters-by-choice, then, continues to rise.
At the same time, many still remember the days of the housing crash, when their homes lost value. This has tarnished the dream of owning a home for many.
Still others might not be able to qualify for a mortgage loan today. For them, renting is the only option.
Whatever the reasons, though, the RENTCafe study offers more evidence that the number of renters throughout the United States will only continue to grow.
