Have you heard the phrase “Renter Nation” in economic discussions or on the news? Did you know that in Los Angeles 64.1 percent of homes were rented? That is more than 1 in 2 homes! Renter statistics affect renters and home owners. The housing market is interconnected: renters, home owners, and buyers all impact each other by their actions, timelines, and choices.
Why Renter Statistics Matter
1 – CURRENT RENTERS:
If you are currently a renter, then it is good to know where you fall in the averages and trends. Sometimes you can feel like the only one who is waiting for (fill in the blank life event) to happen before you buy. Taking a look at statistics, you might realize that your experience is more typical than you previously thought.
2 – BUYERS:
If you are buying your first home and are currently renting, then it is good information about what you are leaving (renting) and moving into (owning). If you are purchasing an investment property or second home that you plan to rent part of the year, then renter statistics might be good evidence that demand for rentals is high!
3 – HOME OWNERS AND HOME SELLERS:
If you are a home seller, then you should know that the decision to become a home owner from being a renter is a big decision and that means your potential buyer may be hesitant or cautious. Sometimes the shift from renting to home owning has psychological and emotional components more than just the financial aspects. Sometimes in escrow the negotiations and timeline might be affected by those components.
California Renter Statistics
- 40% of renters are living in a single family home, with 43% renting apartments and 10% renting townhomes/duplexes/triplexes
- 34% of renters are living in a 2 bedroom home
- 37% split their rent with roommates
- One in three renters are wanting to buy a home when they move from their current residence
One section of this Renter Survey report I particularly was struck by was a title slide saying, “Down payments are an obstacle, but perceptions are too“*.
41% of Boomers (Yes, 2 out of 5 baby boomers) who are currently renting think that you have to have 20-30 percent saved for a down payment to purchase a home. This means that you might be thinking that you can’t buy, but that is based on misinformation or not enough information.
Becoming a Home Owner
Someone you know is renting. California Renters in this survey said that getting a new job, raise, promotion, getting married, starting a family, or moving out of their parent’s place would all be things that spur them to buy. Does that sound familiar?
These are all big life events. If you are considering buying, then make sure you have the right information. Don’t rely on a quick Google search to give you the definitive answer. Talk to a real estate professional about your individual circumstances, finances, and end goal.
Becoming a Landlord
Are you interested in purchasing an investment property? Do you want to buy a property to rent on Airbnb? If you are purchasing a property with the intent to rent it, then you will have different considerations than if you were purchasing it as your primary residence.
If it is a condo, townhouse, or PUD, does the Home Owner’s Association (HOA) place restrictions on rental units?
What is the average rent in that area?
Is rental demand expected to increase or decrease?
Our team of REALTORS at KALEO Real Estate Company are trained experts, equipped to answer your questions as a home buyer, home seller, and renter. Choose local experts who know your name. Choose a KALEO Realtor.