More Renters Than Homeowners in 9 of 11 Largest US Cities

The Wall Street Journal has a story in today’s paper (2/9/15) about the continuing rise in percentage of renters in America’s largest cities:

Renters made up the majority of the population in cities at the core of nine of the nation’s 11 largest metro areas in 2013, a sharp change from 2006, when renters were the majority in just five of those cities, according to a new report…

But the report, scheduled to be released Monday by New York University’s Furman Center and Capital One Financial Corp. , found a significant shift in the proportion of renters in all major cities—even in lower-density, relatively inexpensive places such as Houston and Dallas.

A resulting demand for apartments is rising so fast that it is starting to overwhelm supply in many cities, which is pushing up housing costs nationwide…

Among the 11 cities, Philadelphia had the smallest percentage of renters in 2013, just 44%, up from 37% in 2006 and 33% in 1970. Nationwide, 64% of households were own-occupied and 36% were renter-occupied at the end of 2014.

In the short term, economists and developers said they expect to see the percentage of renters continue to rise in most cities.