NYU Furman Center and Capital One Report: Renter Population Growing in Nation's Largest Metro Areas While More Renters Struggle to Find Affordable Housing
The Landscape examined rental housing affordability trends in the nation's largest metropolitan areas, including
In all 11 metro areas, both the renter population and housing stock grew during this period. By the end of the period, the number and proportion of people renting had increased—both within central cities and in the surrounding suburbs. The report also showed a gap between growing demand and supply. From 2006 to 2014, the renter population grew faster than the stock of rental units in the 11 largest metro areas, and in metro areas nationwide, pushing the average rental household size up and putting pressure on the affordability of rental housing.
"This study shows that affordable housing is becoming increasingly out of reach for many low- and even moderate-income renters in the nation's largest metro areas—both in the central cities and their surrounding suburbs," said Ingrid Gould Ellen, Faculty Director of the NYU Furman Center. "In all of the metro areas we studied, the renter population grew faster than the housing stock. As supply did not keep pace with this growth in demand, vacancy rates decreased, the average number of people living in a rental unit increased, and, in most areas, rents rose."
On average, in metro areas nationwide, rents rose faster than incomes. In nine of the 11 largest U.S. metro areas, the typical renter could afford fewer than 40 percent of the units on the market in the previous year. In the
Seven of the 11 largest metro areas also became less affordable to the typical renter between 2006 and 2014. The seven metro areas are
"Millions of people nationwide are struggling with the gap in affordable housing, leaving many rent-burdened as the population of renters continues to increase," said
The renter population is increasing throughout metropolitan areas
The rental population is booming – in 2014, there were nearly 22 million more renters in metro areas in the U.S. than in 2006.
- In all of the metropolitan areas, the renter population grew in both the principal cities and the surrounding suburbs between 2006 and 2014, consistent with metro areas nationwide.
- In 2014, among the 11 largest metro areas, the majority of central-city residents were renters everywhere except the
Houston andPhiladelphia metro areas.
Affordable housing out of reach for many
In the majority of the 11 metropolitan areas, the number of rental units that were affordable to the typical renter fell between 2006 and 2014.
- Of the 11 largest U.S. metro areas, the
Washington, D.C. metro area was the least affordable to the typical U.S. renter household in 2014, followed by theSan Francisco andLos Angeles metro areas. Dallas andHouston metro areas were the most affordable to the median U.S. renter household.
More renters lived in single-family homes
While single-family homes are often assumed to be owner-occupied, a sizable and growing portion of renters in the 11 metro areas lived in single-family units in 2014.
- In all 11 metros, and in metros nationwide, a greater share of renter households lived in single-family homes in 2014 than did in 2006.
Atlanta ,Philadelphia andHouston were the top three cities with the most renters living in single-family homes. - In every metro except for
Boston andNew York City , more than one in five renters lived in a single-family home in 2014.
Considerable gap in supply and demand
The mismatched growth in demand and supply for rental units pushed rental vacancy rates down.
- In the 11 largest metros, and in metros nationwide, the renter population grew more quickly than the number of rental housing units between 2006 and 2014, putting pressure on rental households.
Fewer rental units were affordable to renter households in the majority of metro areas
Incomes lagged well behind rents in the majority of the 11 metropolitan areas.
- Seven out of the 11 largest metro areas became less affordable to the typical renter between 2006 and 2014.
- In nine of the 11 largest metros, the typical renter in 2014 could have afforded less than 40 percent of recently available units.
- In 2014, one quarter of renters in seven of the 11 largest metro areas, and in metro areas nationwide, were severely rent burdened, facing rents equal to at least half of their income.
The overwhelming majority of low-income renters were severely rent-burdened
In all 11 metro areas, low-income renters faced much more significant affordability challenges. Rising rents were not confined to central cities: in all but one of the metro areas studied, rents rose in the suburbs as well.
- In eight of the 11 metros, at least a quarter of moderate-income renters—those earning between the 25th and 50th percentile income among renters in the metro area—faced severe rent burden.
- In all 11 metro areas, and in metro areas nationwide, well over half of low-income renters, earning less than the 25th percentile renter income in their metro area, faced rents at or above half of their household income.
Average household size increased
In all 11 metro areas, the average number of people in each rental household rose.
- Metro area units that were owner-occupied in 2005 but renter-occupied in 2013 had, on average, about 2.8 bedrooms, higher than the average of 2.1 bedrooms among all rental units in 2013.
The complete NYU Furman Center and Capital One National Affordable Rental Housing Landscape and additional information are available online at www.furmancenter.org/NationalRentalLandscape.
U.S. Metropolitan Areas – Rental Facts at a Glance
- Between 2006 and 2014, the renter population grew while more and more renters faced difficulty finding affordable housing.
- The number and share of renters increased in both the central cities and the surrounding suburbs of all 11 metro areas, and in metro areas nationwide, between 2006 and 2014.
- The rental housing stock grew much faster than the ownership stock in all 11 metro areas and in metro areas nationwide between 2006 and 2014.
- The share of renters living in single-family homes grew between 2006 and 2014 in the 11 largest metro areas in the U.S. and in metro areas nationwide.
- In six of the 11 largest metro areas, and in metro areas nationwide, the increase in the number of single-family rental units between 2006 and 2014 was larger than the increase in multifamily rental units.
- Between 2006 and 2014, the renter population grew faster than the stock of rental units in the 11 largest metro areas, and in metro areas nationwide, pushing the average rental household size up and putting pressure on the affordability of rental housing.
- The rental vacancy rate dropped in 10 of the 11 largest metro areas, and in metro areas nationwide, between 2006 and 2014.
- In 10 of the 11 largest metro areas, and in metro areas nationwide, the median gross rent rose between 2006 and 2014, both in the central cities and the surrounding suburbs.
- In 2014, the overwhelming majority of low-income renters were severely rent burdened in the 11 largest metro areas and in metro areas nationwide.
- In 2014, rental units that had been on the market within the past year in the 11 largest metro areas and in metro areas nationwide had higher rents and were less affordable than units which had not been recently available, raising the prospect of greater affordability challenges yet to come.
About the NYU Furman/Capital One National Affordable Rental Housing Landscape Research Study
The study commissioned by
About the NYU Furman Center
The NYU Furman Center advances research and debate on housing, neighborhoods, and urban policy. It is a joint center of the New
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SOURCE
NYU Furman Center: Shannon Moriarty, (212) 998-6492, shannon.moriarty@nyu.edu; Capital One: Angela Solomon, (646) 231-9011, angela.solomon@capitalone.com