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38 | M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION Potential Homebuyers Opting to Rent Rather Than Buy The share of families living in apartments has reached the highest level in half a century. W ith 43 million families living in apartments, the highest level in half a century, renting is popular even among high-earners who can buy but prefer to rent their homes instead. According to the most re- cent analysis of IPUMS data from RentCafe shows that the number of renters with annual incomes of over $150,000 grew by 82% between 2015 and 2020, faster than renters overall. There are now 2.6 million high-earners living in rentals in the United States, and among them are many millionaire renters. High-income renters earning $150,000 or more saw a rapid growth of 82% in five years—the most significant increase among all income groups—followed by renter households with an- nual incomes between $100,000 and $150,000. At the same time, middle-income renters grew at a slower pace but still posted double-digit increases. The only segment to register a drop was that of households earning less than $50,000, which decreased by 11.2%. This is explained by low-income renters moving in with family members when the pandemic started, as well as households whose earnings grew and transitioned to higher-income groups. Top Cities with Biggest Increase in High-Income Renter Households 1. Seattle 2. Miami 3. Portland, Oregon 4. Nashville, Tennessee 5. Austin, Texas 6. San Jose, California 7. Denver, Colorado 8. Indianapolis, Indiana 9. Las Vegas 10. Phoenix Top High-Income Renter Hotspots 1. New York, New York 2. Los Angeles 3. San Francisco, California 4. Chicago 5. San Jose, California 6. San Diego 7. Seattle 8. Houston 9. Washington, DC 10. Boston What Makes Those Who Can Afford to Buy Turn to Renting? Part of the answer may be found in high home prices, which made homeownership less attractive, especially for those well-heeled residents in pricey lo- cations. This becomes even more obvious when comparing home prices to renter income in the cities with the highest increases in high-income renters. The number of renter house- holds with incomes of more than $1 million also reached a record high of 3,381 in 2020—three times as many as there were in 2015 when 1,068 millionaires were renting their homes in the United States, according to the most recent data from IPUMS. According to a survey from Charles Schwab, Americans con- sider that an average net worth of 1.1 million represents being financially comfortable. Data also showed that it seems that being financially comfortable is a millen- nial trait, with this demographic making up a majority (28%) of millionaire renters. For many millennials of homebuying age and with above-average incomes, lifestyle renting is a better choice than owning. Gen X follows closely behind, making up 23% of millionaire renter homes. As the first gen- eration that redefined and broke away from the American Dream of homeownership, Gen Xers initially turned to renting due to the strain brought on by the 2008 housing crisis. Today, they're fol- lowing the same lifestyle renting