According to the National Affordable Rental Housing Landscape by NYU Furman Center and Capital One, the number of tenants increased in 11 of the metropolitan cities of the United States between 2006 and 2014.
In cities like Atlanta, Boston, Chicago, Dallas, Huston, Los Angeles, New York City, Philadelphia, Washington DC and San Francisco the decrease of affordable houses for sale increased the number of tenants. According to the research, the rent parameter of affordable housing should cover less than 30% of the home income.
The research of Capital One shows that during the studied period both tenants and the amount of housing increased. However, towards the end of the period the number and the proportions were changing and the tenants population increased in eleven of the largest cities of the United States and in general all metropolitan cities of the country. This increase in the number of rented homes, due to the stock decrease, has put pressure the affordability of the housing rental market.
“This research shows that the affordable house is more and more out of the reach for many tenants of low or even moderate incomes in the largest metropolitan areas of the nation both in the central cities and the surroundings suburbs”, said Ingrid Gould Ellen, Faculty Director of the NYU Furman Center. “In all the metropolitan areas that we studied, the renters population grew more rapidly than the housing inventory. As supply didn’t keep the growing rhythm of the demand, the rate of vacancy decreased, the average number of people who live in a rental unit increased and the rent increased in most areas”.
Cities like Atlanta, Dallas, Los Angeles, Miami, New York City, San Francisco and Washington DC have become less affordable for the common renters between 2006 and 2014, according to the source.
Important data of the Research:
- In 2014, there were almost 22 million renters more in metropolitan areas in USA.
- In 2014, including all 11 cities, most tenants from the central part were renters except Houston and Philadelphia.
- In 2014, Washington DC was the least affordable place to rent, followed by San Francisco and Los Angeles.. Dallas and Houston were the most affordable among the 11 cities.
- While single-family houses had mostly been occupied by their owners, an important and growing part of the tenants in the 11 metropolitan areas lived in single-family houses in 2014.