Renting…

A Nation of Renters

The United States is shifting toward a “renter’s nation” primarily due to a historic housing affordability gap where home prices have significantly outpaced wage growth. While average earnings rose 38% since 2017, home prices surged by 80%, making the required down payment and monthly mortgage costs unattainable for many.

​Key factors driving this trend include:

• ​Institutional Investment: Large private equity firms (like Blackstone) and “build-to-rent” developers are buying or constructing entire neighborhoods specifically for rental, reducing the inventory of homes available for individual purchase.
• ​Supply Shortage: A deficit of millions of housing units has kept prices high, even as interest rates fluctuate, forcing middle-income families to remain in the rental market longer.
• ​Delayed Homeownership: The median age of a first-time homebuyer has risen to 40, reflecting a generational shift where Millennials and Gen Z are priced out during their prime home-buying years.
• ​Cost Burdens: Roughly one-third of U.S. households are now “cost-burdened,” spending more than 30% of their income on housing, which prevents them from saving for a down payment.