Are Rent Prices Higher then Owning?

The article, The Steady Rise of Renting, from www.citylab.com, reports that a recent report from the real estate website Trulia provides substantial evidence of the Great Reset from owning to renting. The report examines growth in renting versus owning across the U.S., as well as the rise in rental housing prices and the growing housing burdens faced by renters between 2006 (two years prior to the economic crisis) and 2014. To get at this, the report uses data from the American Community Survey for 50 of the largest U.S. metros.

The increase in renting was most notable among millennials. The share of renters between the ages of 18 and 34 jumped from 62.5 percent in 2006 to 71.6 percent in 2014. This increase in renting was even larger among Americans between the ages of 26 and 34, rising by a whopping 10.9 percentage points between 2006 to 2014, compared to 5.9 percentage points for the younger group. But renting was up among all age groups, as the chart above shows. The share of renters increased from 33 to 40.7 percent among households ages 35-54. Trulia speculates that this group may have been hard hit by job loss and foreclosure during the crisis. Renting also increased, from 24.4 to 27 percent, among Americans aged 55 and older.

Metros with the Largest and Smallest Shares of Renters, 2014

Top Ten Metros	Largest Share of Renters
New York, NY	56.9%
Los Angeles, CA	54.4%
San Francisco, CA	53.7%
Las Vegas, NV	49.4%
San Diego, CA	47.7%
Miami, FL	47.2%
San Jose, CA	43.7%
Oakland, CA	43.2%
Austin, TX	42.9%
Orange County, CA	42.5%

At the end of the day, housing affordability is made up of two things: the cost of rent and the income and wages people use to pay for it. In the aftermath of the economic crisis, renters have been caught in a devastating bind as rents have risen while incomes decline. Average rents increased by 22.3 percent between 2006 to 2014, while average incomes declined by 5.8 percent.

Here is the link to the entire article: http://www.citylab.com/housing/2016/02/the-rise-of-renting-in-the-us/462948/

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