Courtesy Rent Cafe
With home prices rising steadily and inventory staying low, Dallas residents, like many Americans, are turning to renting instead of buying.
And not just because of cost or delivery bottlenecks, according to a study by Rent Cafe. Millennials who are now in their prime to buy a home – not initially in the market – are now choosing to rent instead of pursuing the “American Dream”.
According to the study, millennials with higher incomes are behind the boom in so-called “lifestyle renting”.
“2021 will be the year millennials were forced to give up the American dream,” the researchers report. “According to our latest analysis of 5.9 million rental requests, the percentage of millennial renters with individual incomes above $ 50,000 is at a 5-year high – 43%. A surprising number when you consider that the generation has reached the age to buy a home. “
High-income millennials saw rental requests increase by 20%, more than any other buying age cohort. Its growth this year resulted in an all-time high of 39% in rental requests from individuals with incomes over $ 50,000.
43% of all millennials applying for a rental this year will earn over $ 50,000 – a sum that would have made it possible to buy a home if it weren’t for the restrictive prices. For comparison: The proportion of well-paid Millennials who applied for a rental in the past year was 36%.
“Today’s tenant profile of millennials has changed significantly compared to last year,” reports Rent Cafe. “In 2021, we’re seeing rental applications from individuals earning approximately $ 4,300 more than last year’s applicants. That means that wealthier millennials are also making use of the current housing market. “
Small-town America is full of hotspots for millennial lifestyle renters, according to Rent Cafe.
In big cities where home buying became suddenly impossible to mission, the number of high-earning millennials applying for rent increased. Indianapolis saw millennial tenant applicants earning over $ 50,000 increase 51%. Las Vegas saw 43% growth while Phoenix grew 39%.
In Dallas, however, the suburbs saw a higher increase in lifestyle renters than the city.
But here in our quarters, too, the shift to renting is taking place.
At the local level, I interviewed East Dallas’s Patrick Donlin for a fuller residential history. His company owns and rents approximately 30 single-family homes in Dallas.
Based on market trends and what he sees, he says 75% of Dallas residents will be renters with 25% homeowners by 2030.
We’ll take a closer look and will report back after the vacation.
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