More and more people are opting to rent, even if they have the option to buy a house.
According recent U.S. Census data, the annual increase in high-income renters (earning $150,000 or more) is growing faster than owner-occupied households, up by 175% from 2007-2017.
RENTCafe gives two reasons high-income earners are making the choice to rent vs. own. First, renting offers the flexibility to live closer to jobs. Renters can also relocate more easily to arts and culture districts within a city, vs. a homeowner.
Second, many of the high-earning renters live in cities with rapidly-increasing home prices. In cities like Seattle, Charlotte, Fort Worth, and Austin where high-paying tech jobs and employment overall are up, the number of new renters far outpaced the number of new homeowners.
CoStar News reports that rising prices are likely to curtail homebuying in major markets nationwide over the next three to five years, a sign of strength for rental property and apartment development.
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