The cities with the highest concentration of renters are mostly in the Northeast, according to a new study.
Nine of the top 10 cities with the highest percentage of renters are in the Northeast, with Miami as the outlier at number eight, according to a recent study based on census data from a real estate consulting firm. IPX1031.
Among cities with a population of 100,000 or more, Newark, New Jersey, has the highest share of renters at 79.15 percent, and three other New Jersey cities rank in the top 10 for renters.
Meanwhile, the cities with the highest percentage of home ownership were concentrated in the Sun Belt, with four of the top 15 cities located in Arizona and three in Florida. Buckeye, Arizona, ranked number one, with a home ownership rate of 92.39 percent.
The trends broadly reflected patterns in home prices, with areas that have more affordable housing tending to see higher home ownership rates.
A study of cities with a population of at least 100,000 shows those with the highest rental rate and the highest home ownership rate.
Among cities with a population of 100,000 or more, Newark, NJ (above) has the highest proportion of renters at 79.15 percent, and three other New Jersey cities are in the top 10
In New Jersey, the median home sales price for January was $426,900, compared with $406,200 in Arizona and $386,500 in Florida, according to Redfin data.
A survey accompanying the IPX1031 study found that nearly three-quarters of American renters want to buy a home, but 90 percent said money was a factor holding them back from buying, followed by 35 percent who cited rates. of interest.
Rising mortgage rates have become a hurdle for many prospective homeowners.
Last week, the average contract rate on a 30-year fixed mortgage rose for the fourth week in a row to 6.79 percent, according to the Mortgage Bankers Association.
“Higher mortgage rates have a direct impact on borrowing costs, which hurts affordability,” said Nadia Evangelou, chief economist at the National Association of Realtors. “At the current rate, buyers need to put down more than 20 percent if they don’t want to be overwhelmed by costs.”
The IPX1031 survey found that, in addition to money and interest rates, worries about debt, responsibilities and finding the right home were also reasons renters cited as barriers to homeownership.
When it comes to the states people would like their dream home to be in, the top on the list were California, Florida, New York, Washington, and Colorado.
In terms of location and surroundings, 28 percent of those surveyed would like to have their dream home in the suburbs, 22 percent on the beach or water, and 20 percent in the country.
In addition to Newark, three other New Jersey cities are among those with the most renters.
Elizabeth is second with 75.45 percent, followed by Paterson (75.32 percent), while Jersey City is sixth with 71.17 percent.
The other two cities in the top five are New Haven, Connecticut (74.43 percent), which ranked fourth, followed by Hartford, Connecticut (71.35 percent).
Nine of the top 10 cities with the highest percentage of renters are in the Northeast, with Miami as the outlier at #8
Buckeye, Arizona, ranked first in home ownership, with a 92.39 percent homeownership rate.
Outside of the Northeast, other places in the top 15 for renters include Miami; three California cities (Glendale, Los Angeles and Inglewood); Irving, Texas; and Provo, Utah.
On the other hand, Arizona has the most cities with the highest percentage of homeowners, with four cities in the top 15.
Buckeye, Arizona has the highest percentage of homeowners in the country, followed by Port St. Lucie, Florida (83.55%), Sugar Land, Texas (81.49%), and Rio Rancho, New Mexico (81. 03%).
Outside of the Sub Belt, the top 15 cities for home ownership also included two cities in Colorado and one each in Indiana, Michigan and Kansas.
For states, those with less urbanization tend to have higher homeownership rates.
When it comes to state homeownership rates, the tide turns and states with lower urbanization rates tend to have higher homeownership rates, regardless of region.
According to US Census data, West Virginia had the highest rate of home ownership in the fourth quarter of 2022, at 79.1 percent, followed by Delaware, Minnesota, Wyoming, and New Hampshire.
Meanwhile, New York state had the lowest homeownership rate at 53.6 percent, followed by California, Hawaii, Massachusetts and Nevada.
Nationally, the US home ownership rate was 65.9 percent in the last quarter of last year, according to census data.
After reaching an all-time high of 69.4 percent in 2004, national homeownership rates trended downward for more than a decade before reaching 63.1 percent in 2016, the lowest level in records going back to 2016.
States with lower urbanization rates tend to have higher homeownership rates
Home ownership rates trended downward as the large millennial generation first entered adulthood, but began to rise again as they reached their 30s and started buying homes.
Home Prices Soared to Record Highs During the Pandemic Housing Market Boom
Since 2016, home ownership rates have risen steadily, a trend likely reflecting the rising demographic of millennials entering their 30s and buying their first homes.
Still, after downturns at key points in their careers in 2008 and 2020, the millennial generation, now between the ages of 27 and 42, owns homes at lower rates than previous generations of the same age.
Among older millennials who have reached the age of 40, 60% own a home, compared to 64% of Gen Xers and 68% of baby boomers of the same age, according to census data.
Last year, amid soaring home prices and rising mortgage rates, the typical age of a first-time homebuyer rose to an all-time high of 39, according to the National Association of Realtors.
Concerns about prices, low inventory and high mortgage rates continue to hold back the housing market.
Earlier this week, Fannie Mae’s monthly housing sentiment gauge fell 3.8 points in February to 58.0, falling near its record low set in October.
As mortgage rates rise, both buyers and sellers are bearish on the market, according to Doug Duncan, chief economist and senior vice president at Fannie Mae.
“With home-selling sentiment now lower than it was before the pandemic, and home-buying sentiment remaining near its all-time low, consumers on both sides of the transaction seem cautious about the housing market. housing,” Duncan said in a statement.
“We believe that these results confirm our expectation of subdued home sales in the coming quarters, particularly now that mortgage rates have started to rise again,” he added.
The survey found that 44 percent of consumers believe it is a bad time to sell, up from 39 percent the month before.
According to Duncan, the majority of those surveyed who indicated that this is a bad time to sell cited unfavorable economic conditions and mortgage rates as the main reasons for that belief.
