Due to high costs, purchasing a home remains unattainable for many Americans. This has caused the rate of homeownership to stagnate. According to National Mortgage Professional, which cites recent data from housing market platform Redfin, the number of renter households in the U.S. increased by 2.7% during Q3 2024 to a record 45.6 million, growing three times faster than homeowner households, which rose by 0.9% to 86.9 million during the same time period.
The number of renters is generally higher in expensive housing markets, such as San Jose, Calif., where renters make up 52% of households; or Los Angeles, where 50.8% of households are renters. On the other hand, more affordable markets have fewer renters. For instance, in Cape Coral, Fla., renters make up just 21.8% of households; and in Charleston, S.C., they account for 23.7% of households.
A recent Freddie Mac study revealed similar findings, as a lack of affordable entry-level homes and exceptionally difficult economic conditions for younger first-time homebuyers (FTHBs) and renters stuck renting (RSRs) present persistent barriers to lenders' access to this demand — even as these buyers comprise an ever-larger slice of the home-purchase pie. Read more