Data from the Urban Institute indicates that between 2010 and 2030, the renting population is expected to exceed that of homeowners. The report, titled Headship and Homeownership: What Does the Future Hold?, looks at the year that millennials are to reach peak homebuying age and trends leading up to it. Although the number of homeowners is anticipated to increase during this two decade period, it is believed that in 15 years, renters will number 13 million to nine million homeowners.
The increase in renters over homeowners is due to the number of millennials and the ethnic makeup of the generation. According to the study, it is believed that the new surge of renters will create additional need for rental housing while reducing the demand for owner-occupied homes. Currently, the rental housing market is already at a fairly high occupancy, and rental rates are rising as a result. This is also leading to a number of single-family homes being turned into rental properties.
Nonwhite populations are where most of home ownership is expected to increase. In the next five years, 77 percent of new households are predicted to be nonwhite, and by 2030, that number is to be 88 percent. Additionally, by 2030, it is anticipated that the rate of Hispanic homeowners will reach 48.2 percent, up from 47.3 percent in 2010.
Along with a push from nonwhite households, home ownership is also supposed to increase as a result of growth among senior households, which are owned by individuals who are at least 65 years old.