Who is renting? Why would someone still rent? Why pay someone else’s mortgage when you could have your own? These are the questions or marketing tactics by many real estate agents. Make people feel bad about renting so they buy property that they can’t afford or don’t really want.
Renting is a choice. And a good choice for many. There I said it.
According to Zillow the median US renter in 2022 is 39 years old. Typically, single and in an apartment. The older we get the less likely we are to rent. The numbers are staggering. 70% of renters are under 50.
Millennials are not the largest living generation and represent the largest percentage of renters. Millennials have seen it all and have a much harder time attaining home ownership. Realtors, stop giving them a hard time, they have been through enough!
The largest concentration of renters is in the south with 36%. Followed closely by our region, the wild wild west at 29%. The Northeast comes in at 19% and the Midwest at 17%. Home prices and income probably pay a role in that.
Renters in general make less. Most have a median household income of $42,500. 54% of renters make less than $50,000. 29% make between $50,000 and 100k. And 17% of renters make over $100,000. I would venture a guess that those making over 100,000 and still renting are either saving to buy a house, or enjoy renting and not have a house burden.
As you would expect most renters live in apartments. But many are venturing towards the single family home market. Especially after the last two years. People want more space, to work from home or get more bang for their buck.
Why rent? Most real estate agents cannot wrap their heads around this. Frankly its verging on bullying. Why do people rent well we have found the following
- Flexibility- They can move when they want
- Burden of House Payments- It is expensive once you factor in things like property taxes and insurance, even utilities that are sometimes covered with rent.
- Responsibility- Many people don’t want to have to deal with house maintenance.
So again, I will say it. Renting is a choice. A valid choice. Stop making people feel bad about it.