Renters currently account for 37 percent of all households in America or just over 43.7 million homes. This is an increase of nearly 7 million since 2005, according to U.S. Census Bureau data analyzed by online real estate site Zillow.
As home prices continue to climb nationwide, transitioning from renter to owner has grown increasingly difficult, leading to a growth in long-term renters who have no intention of buying in the future. Studies show that making the leap from renting to owning a home is further complicated by a statistical reality: the typical renter household makes an average of $50,000 less per year than those who own. According to the Zillow Group Consumer Housing Trends Report 2017, renters earn a median income of $37,500, essentially unfeasible to buy in most markets.
Still, this has not deterred Americans' desire to become homeowners. Over half of Millennials in a Zillow survey consider buying over renting.
Meanwhile, conforming no-point 30-year fixed mortgage rates averaging 3.875 percent while 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.