There are more renters than any time since 1965

Via CNBC

More people are renting than at any other point in the past 50 years.

In 2016, 36.6 percent of household heads rented their home, close to the 1965 number of 37 percent, according to a new report by the Pew Research Center based on data from the Census Bureau. Each month the Census Bureau surveys a nationally representative sample of households.

The total number of U.S. households grew by 7.6 million over the past decade, Pew reported. However, the number of households headed by owners remained relatively flat, while households headed by renters grew by nearly 10 percent during the same time period.

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Rising home prices, lingering fears from the housing crash, and larger amounts of student debt are some of the reasons why many Americans see the appeal of renting, said Richard Fry, a senior researcher at Pew and one of the report’s authors.

“There is some evidence that increased student debt has made it more difficult for households headed by young adults to become homeowners,” Fry said.

And millennials (those age 35 and younger) continue to be the most likely of all age groups to rent, Pew found. In 2016, 65 percent of households headed by young adults were renting, up 8 percentage points from 2006.

Other reasons could be that young adults haven’t accumulated enough wealth for a down payment on a house, Fry said. Also, owning a home inhibits moving, and young adults are the most likely age group to move, so they may prefer not to own just yet, he said.

Median sale price rises to highest on record

Median sale price rises to highest on record  

The happy homeowner

However, cautious renters may not be making the best decision for their long-term happiness. Renters’ top regret was wishing they had bought instead of renting (41 percent), according to a recent Trulia survey.

“One thing our research has found is that people can sometimes be a little too cautious,” said Trulia’s managing editor, David Weidner. “In every U.S. major market, it’s cheaper to buy a home than it is to rent over seven years. And it’s really not even close.”

Housing prices have been rising, with the median value of all homes in the U.S. in June surpassing $200,000, up 7 percent from a year ago. In the long run though, buying is still a better deal than renting, said Weidner.

People must realize that although a mortgage seems like a huge investment, your incomes are likely to rise, especially if you’re a millennial, Weidner said, and over time the housing payment won’t seem as big.

“The toughest times [after buying a house] is in those first few years. Down the road those costs will start to shrink as part of the overall home budget,” Weidner said.

Almost half of Americans have buyer's remorse about their house

Almost half of Americans have buyer’s remorse about their house  

 

Although renting is today’s trend, the future could look different. Nearly three-quarters (72 percent) of renters said they would like to buy a house at some point, according to a 2016 Pew survey.

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deplorably stanley
deplorably stanley

The press and financial industry have so distorted the the concepts of home ‘ownership’, which America does NOT have. – You never own your home in America. – The city can take it away, the county can take it away, the IRS can seize it, it can be confiscated in lawsuits, it can be annexed, zoned and rezoned, Medicaid can demand the surrender of your home in exchange for healthcare.

Home ownership is a_fucking_myth in the USA. It’s an eternal rental from the power brokers, it’s a mirage perpetrated by all of agencies who want you to sink the hard earned wealth of your labor into an illiquid asset which they can then steal because you were too stupid to understand that you were being set up for the kill.

Anonymous
Anonymous

It may be a myth, but someone has their name on the Title and that someone has the right to buy and sell it at will, according to his own judgment, and collect the capital gains from the sale or incur the debt of it if their judgment was bad instead of good.

That someone isn’t the renter.

deplorably stanley
deplorably stanley

You don’t seem to get it.

Anybody who is not at the top of the government/financial food chain IS a renter from the taxing authorities and the legal system.

Just wait. You’ll find out.

Anonymous
Anonymous

Anyone renting pays those same taxes through his rent, they just don’t get the benefits of having their name on the title which carries the right to do with it as they wish (including either living in or renting it to someone).

As anyone over the age of 14 or so should already have found out.

L Murray
L Murray

I live in southern Calif. and the average tract shack out here is 3-500k who can afford to buy unless a previous owner using the money they got from selling a home, or they make a ton of money? Most people don’t make a ton of money, especially not millennials, the news was just saying in the LA area you’re poor if you make only 80k a year. Personally I rent because if I bought between payments, HOA fees, taxes, the cost of repairs, etc. I’d pay more than my rent.

WIP
WIP

That number will grow without a) a crash or b) a massive increase in home construction.

I saw an interview where the interviewee said 77% of home buyers had remorse because they didn’t buy a bigger house.

Just because renters say they would like to buy house doesn’t mean they can or even ever can.

The article says your income is “likely” (weasel word) to go up. Hey, honey, let’s bet on “likely”.

fleabaggs
fleabaggs

WIP.
Likely to go up jumped out at me too.

Wip
Wip

Yeah, with all the offshoring + technology, how likely is everyone’s income going to go up? How many, if/when they really think about it, believe their jobs won’t get hurt in the future?

i forget
i forget

All rent. There are no owners. Many grasp that Wall Street is a much more rigged version of Vegas. Not so many are yet willing to admit “real estate” is just variation on that theme. Countries are CAFO’s. All of them. Citizens, particularly American variety, are property. They don’t own property.

Your parents did it in the road & you was born in the road. To serfdom. Which is a continuous process. Not a destination.

Anon
Anon

I would say homes in America now are every bit as much of a cartel as OPEC. In the crash of 2008, lots of normal’s were suckered in to “homeownership” by the Real Whores and commission chasers. Then, everything went sideways, and the same people that shorted the mortgage bonds, then took their gains and went out to start REITS using the funds (and some help from the Federal Reserve), and buying at the auction steps from the sheep that were conned by the whores.
Now, if you look at the average suburban neighborhood in Denver, Phoenix, Vegas and other cities, a large amount of the housing stock is owned by companies such as American Homes 4 Rent, Invitation Homes Inc. (a Blackrock company),Progress residential (a firm started by Donald Mullen who was head of mortgages for Goldman and shorted BTW the mortgage bonds he sold) etc. They then jack up the rents in these homes they acquired, and in some good school districts you literally are looking at multiple rentals all owned by the same entity.
Thus, rents are controlled by one or two parties. Add in the QE games, and the fact that close to 90% of the “owned homes” all have mortgages controlled in some fashion by the TBTF banks, you see that 2008 – 09 was literally a wealth and land transfer from individual Americans to a few very large entities which all non-coincidentally had full access to funds through the Feds monetary programs.
Welcome to the new American dream, we are ALL living in company towns now. Folks, this is the end result of TBTF policies, and not only allowing those that made horrible decisions to continue, but rewarding them. Moral hazard is now bearing its ugly fruit, and it is going to get worse. Prepare accordingly.

Greg
Greg

Excellent summation.
Could it be the youths after being hosed in college are a tad more aware and waiting for the next housing market crash?

fleabaggs
fleabaggs

Anon.
We should add Warren buffet to the list. Berkshire Hathaway Property Manage ment and a few others he has.

Mark
Mark

Americans are doomed by Immigration and Pietros distribution. Eventually , 20% of the population will own 80% of the wealth. And of the top 20% , 20% will own 80% of the wealth. And so on.

Immigration was the dumbest thing ever. I remember reading from my 1973 Encyclopedia that the population of the U.S. was about 170 million people. We had a beach house in South Jersey like so many. Even when we went to Cape Cod there were plenty of shanty bungaloos back in the 70’s.

There are no such things as Bungaloos any more. Those people live in nice capes and commute to Boston.

All the worthwhile land is owned by somebody. And that somebody is at the top of Pietros Distribution. As George Carlin would say “if your not a member of the club, you wont be invited”

suzanna
suzanna

Actually, we are all renters now.

unit472
unit472

Prior to WW2 only about 50% of Americans ‘owned’ their home. We are just going to have to get used to the fact that the postwar boom was an anomaly where cars and new roads opened up vast areas around our major cities for housing. That era is gone and unless we do some ‘brownfield’ construction on our abandoned malls and factories we don’t have any land close in to build on anymore. Two hour commutes are no bargain and yet, if you don’t have a lot of money, you will have to live in an exo suburb or pay several hundred dollars per square foot for a smallish condo close to downtown.

IndenturedServant

I did this myself for a time and if I were a youngster, especially single, I’d do it again in a heartbeat! I’d buy myself a decent 5th wheel travel trailer or other RV of my choice, find a place to park it and live in that as I piled up money for a down payment or to pay in full with cash.

My best friend parks his 5th wheel at a local lake resort for $1800/year. I think he paid about $6k for the RV. He lives in it with his grandson most of the spring, all summer and most of the fall. That price includes water, electric and sewer. He built a deck and a small shed with a full sized fridge in it and has a fire pit, boat slip and all the great outdoors he can stand.

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