Number of U.S. renters hits 50-year peak
The number of households headed by renters is at its peak.
The Pew Research Center found that more households are renters since at least 1965. Between 2006 and 2016, 7.6 million households were added in the U.S., and the number of renters also increased, unsurprisingly. In 2006, 31.2 percent of households were rentals. By 2016, 36.6 percent of households were renters.
Typically, according to the Pew Research Center, young adults, minorities and those who are less educated are more likely to be renters. However, recently, more baby boomers have chosen renting over homeownership.
Across races, blacks and Hispanics are more likely to be renters. In 2016, 58 percent of black households were renters, and 54 percent of Hispanics were renters, while 28 percent of white households were renters. The report found that across all races and ethnicities, people were more likely to rent in 2016 than 2006.
As for generations, millennials, those under 35, are still the most likely to rent, as 65 percent were renting in 2016, up 8 percent from 2006. Forty-one percent of Generation Xers rented in 2016, an increase of 10 percent from 2006. The percentage of baby boomers renting increased 6 percent from 22 to 28 percent between 2006 and 2016. Those over 65 remained about the same over the decade, with around 20 percent renting.
For education, those who did not finish high school were most likely to rent, with 52 percent of rental households falling in that category. Thirty-eight percent of those whose highest education was completing high school were renting in 2016, while 29 percent of college grads rented.
Despite more people renting, the Pew Research Center found that 72 percent of renters would like to be homeowners eventually, with financial issues delaying the majority.