A rich couple in their forties with two kids are not generally the people who first come to mind when you think of renters, but they are increasingly the demographic willing to spend big bucks to rent long term, especially in more upscale apartments that are heavy on the amenities. Wealthier renters now account for a whopping three-fourths of growth in the rental market. These renters tend to be older with high-incomes and a college education, and some of them even have kids, which pokes a hole in the gold standard of a suburban house with a lawn being the ideal family home. But the growing population of rich renters is hiking up prices: It’s as if the apartment lifestyle itself is getting gentrified.
It's time to put aside all of your assumptions about renters! The fastest-growing group of tenants today isn't the stereotypical broke 20-somethings scrounging for change between the couch cushions.
Instead, renters are becoming wealthier, both younger and older—and more likely to have children than in previous years, according to a recent report from Harvard University's Joint Center for Housing Studies.
"We've seen this enormous growth in high-income households [who are renters]," says Whitney Airgood-Obrycki, a research associate at the center and the lead author of the biennial report. A high-income household is defined as bringing in at least $75,000 a year. "[They] have college educations."
Advertisement
Related Stories
Design
What Gen-Z Buyers Really Want in a Home
The fervor of planning for Millennials in the home building industry has now pivoted to Gen Z. So, what does this new generation want?
Demographics
Post-Pandemic Trends: Working From Home
A greater share of workers are still working from home than before the pandemic and they're concentrated in the information, professional, and financial services sectors
Demographics
Millennials on Top Again as Largest Homebuying Group
Millennials beat out Boomers as the largest homebuying cohort, according to a recent report, but Boomers remain the largest generation of home sellers