Number and age of renters continues to increase

Nearly 9 million more individuals and families are renting in 2015 compared to 2005, according to a new report.

And of those renters, more than half are 40 and older.

This year, 43 million families and individuals rented, making it the largest gain in any decade period on record, according to the Harvard University’s Joint Center for Housing Studies’ recent report America’s Rental Housing: Expanding Options for Diverse and Growing Demand.

The level of households who rent in the country is up to 37 percent, the highest it has been in 50 years. With nearly 8 million homes lost to foreclosure over the past decade, many residents are instead choosing to rent. Additionally, according to the report, average household income has regressed, falling back to 1995 levels, making renting a more viable option over owning a home.

The millennial generation has contributed to the increasing number of renters as they age and move out of their parents’ homes. Many choose to rent instead of buying, especially as they delay marriage and children. The number of renters under the age of 30 is nearly 1 million higher than past decades.

However, generation X, characterized as those who were born between 1965- 1984, has also added to the increased renter population. Three million of Americans in that age bracket are currently renters.

Interestingly, the largest increase in renters goes to baby boomers, those born from 1946-1964, with an increase of 4.3 million renters. The report suggests that the increase is due to the aging of baby boomers, as well as the decrease of homeownership among residents of that age.

As for income levels, the largest increase of renters were those earning less than $25,000 annually. The report suggests this increase is due to the recession, as that low-income households are more likely to rent.

However, there was also a growth among renters earning $50,000 or more annually, bringing their total to 3.3 million.

“While such high-income households still represent a relatively small share of renters, the rate of growth in this segment has far outpaced that of other income groups and testifies to the growing appeal of renting among households with substantial financial means,” the report stated.