The share of renter households in the U.S. is growing at triple the rate of homeowner households as home costs outpace rent increases, a new report from real estate company Redfin has found.
The growth rate of renter households has reached its second-fastest pace in about a decade, rising by 2.7 percent in the third quarter, amounting to a record 45.6 million. By contrast, homeowner households grew by 0.9 percent during the same timeframe, reaching 86.9 million, another high watermark.
“The median asking rent was up 0.6 percent year over year in September, but rents have remained largely flat for the past two years—becoming more affordable as wages grew at around 4 percent,” the report found.
The report comes as housing affordability has emerged as a key issue for voters in the weeks of leading up to the 2024 presidential election.
Recent data has shown swing-state voters have experienced an outsized housing cost burden. Housing prices in some counties in Sun Belt battleground states have doubled over the last five years, a Washington Post analysis found, for example.
A recent survey from the Pew Research Center also showed that 69 percent of voters said they are “very concerned” about home prices. That’s an 8 percent jump from the figure recorded in April 2023.
“Affordable housing has been at the forefront of this election cycle because so many people are struggling to see how they will ever become homeowners—especially those from younger generations,” Redfin Senior Economist Sheharyar Bokhari said in a statement.
“With home prices at record highs and mortgage rates remaining elevated, renting is increasingly the only viable choice for many young people and families,” Bokhari added. “Building more homes will help address that, but we also have to recognize that Gen Z and future generations may not view homeownership as a life goal and the rentership rate may continue to rise for years to come.”
