On Wednesday RENTCafé, a research site providing original analysis on city-based studies and in-depth insights of the real estate market, reported that baby-boomers are currently dominating the rental home market.
Utilizing the most recent U.S. Census Bureau data from Census ACS 5-year estimates for 2009-2015, the report analyzed tenure of occupied housing units, age groups, education attainment, and household types—ultimately discovering that across the nation, the number of baby-boomer renter households reported an increase of 2.5 million, which represents the largest net increase by an age group.
Between 2009 and 2015, the percentage of the renting population over 55-years old increased by 28 percent, while there was only a 3 percent increase in renters 34-years old and younger.
Renter households with “empty-nesters” or renters with no children saw the most significant increase of 21 percent. Meanwhile, rentals filled with families with children experienced an increase of only 14 percent.
Additionally, baby-boomers also account for the highest increase in renters in urban areas, “but the spike in numbers is much higher in the suburbs at 21 percent compared to 39 percent.”
Whether driven by a “change in lifestyle, a consequence of the housing crash, or an inability to find affordable homes to downsize,” the data points towards the baby-boomer demographic as the expanding population of renters. So what’s driving this group to give up on homeownership?
According to Simona Solomie, a Real Estate broker with RE/MAX Masters of Morton Grove, Illinois, there are a number of reasons driving baby-boomers away from purchasing a home.
“Lowering living expenses, looking for a different lifestyle, less house-related work, and overall less responsibility can be achieved by downsizing, so a lot of retirees opt to rent,” said Solomie.
The infographic below gives a visual perspective at just how much baby-boomers are taking over the rental home market.
Click here, to view the full report.