The American dream of owning a home has rekindled over the past decade, with more households renting than at any point in the last 55 years. Previously, renting was thought of simply as an alternative dictated by circumstances, but his one-third of renters this decade say it’s a matter of choice. In fact, according to previous research, between 2010 and 2020, a diverse set of 23 large and medium-sized cities moved from owner-majority to renter-majority. His five zip codes in Metro Phoenix also transitioned from homeowner to renter majority during that time.
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This time I thought about what these changes might look like at the local level. So he put each of his 50 largest cities in the United States under a magnifying glass and analyzed each zip code’s tenant-owner combination. A first-time analysis using the latest data from the U.S. Census Bureau found that I wanted to see which zip codes radically changed the structure. In other words, which zip codes do renters prefer? In doing so, we found that 101 zip codes switched to tenant majority over the past decade.
With the addition of these communities, 41% or 632 of the 1,553 zip codes analyzed in the 50 largest US cities have a majority renter population.
101 ZIP Codes Realize Transformation from Homeownership Dream to Rental Housing
According to the latest US Census, the number of renters in the US increased by 12% between 2011 and 2020. This is three times faster than his 4% increase in homeowners. So it’s no surprise that as many as 101 zip codes went from owner to tenant majority during this period.
For this report, we have compiled a list of 101 zip codes, ordered from highest to lowest rate of change, to better understand where the greatest change in the mix of owners and tenants occurred.
The first zip code on the list is 43240, Columbus, Ohio. About 68% of the people living in 43420 Columbus are renters. This is the result of a whopping 157% increase over the last decade. It’s a densely populated area, and the postal code largely overlaps with the Polaris area. The Polaris area has a community of young renters with an average age of 31. Here, her per capita income for residents is $43,000, which is 25% higher than in Columbus. metropolitan areas according to census data.
Next is Chicago at 60606, which coincides with the West Loop neighborhood. In this area, the number of renters increased 2.5 times in his ten years (151%). It’s a vibrant community with 63% of the renting population and mostly high-achieving millennials and Gen Z residents.
Postcodes with fastest growing renter population: Downtown is trendiest for renters
Many of the postcodes with the fastest growing renter populations are located in urban centers. Specifically, eight of the 20 neighborhoods where the renter population has grown by more than 80% over the past decade are in or near downtown. Similarly, a recent report on top districts for apartment construction showed a historic boom in centrally located neighborhoods over the past five years. This is a timely response to increased rental demand in these locations.
In this regard, San Antonio, Texas has some of the most sought-after residential rental neighborhoods in the nation. ZIP code 78215 in downtown San Antonio boasts an incredible growth rate of 238% of his rental housing population. Here, the proportion of renters has more than tripled, from just 735 in 2011 to 2,482 in 2020.
Downtown Miami followed suit with a record 173% increase in zip code 33123. Nearly 10,000 renters live in downtown Miami as of the latest census data. Meanwhile, between 2017 and 2021, 3,820 new apartments were built here to accommodate the growing rental community, which is primarily made up of millennials and Generation Z.
55415 zip code in downtown Minneapolis, Minnesota rounded out the top three with a 162% surge in renters. The Twin Cities downtown area is more than twice as renter friendly as it was in 2011. And Minneapolis as a whole clearly reflects the same trend, with rental households dominating the city.
Despite record downtown growth over the past decade, the pandemic has brought a temporary downturn to downtowns, leaving many downtowns empty and dilapidated as employees moved from their offices to their homes. . So it remains to be seen if the post-COVID world will bring him back to recovery for the second time.
Meanwhile, three of the five cities with the most trending renter zip codes are in the South, with Houston, Texas leading with a total of 16 zip codes. Dallas, Texas and Miami, Florida follow closely behind with 12 zip codes each. Breaking the Southern shake are Los Angeles, California and Chicago, Illinois, with zip codes 14 and 12 respectively.
