Renting in the United States reached the highest level in 55 years

Owning a home has long been described as a core component of the American dream. However, although many Americans aspire to become homeowners one day, the number of people who prefer renting to owning a home is increasing. 

More than 43 million households across the country currently live in rental units, according to the latest data from RentCafe. Renting in the United States climbed to the highest point in more than half a century, and the number of renters continues to grow faster than the number of homeowners. Over the past decade, 101 zip codes switched from owner- to renter-majority. 

A zip code in Columbus, OH, saw the biggest increase in the share of renters over the past ten years. In 2021, there were 1,192 renters living in an area with zip code 43240. By 2020, this number rose to 3,067, which reflects a 157.3 percent increase. Columbus’ 43240 has a large population of single adults in their late 20s and early 40s who make up the majority of renters. Families and senior citizens – those who are more likely to own a home – represent a minority. 

Chicago’s 60606 ranks no.2 among the zip codes where renters became the majority in the past decade. Between 2011 and 2022, the share of renters living in homes with this zip code rose by 151.2 percent from 807 tenants to 2,027. Similar to Columbus, this is a densely populated area and a home to many young adults.

RentCafe identified five zip codes across the United States where the entire population are renters – one of them is in New York City. A zip code 10162 covers the Upper West Side and has fewer than 2,000 residents, all of which are renters. Other zip codes with a 100 percent tenant population could be found in Nashville, TN, San Francisco, CA, Dallas, TX, and Fort Worth, TX.  

Los Angeles, CA, has the highest number of zip codes, where renters make up the majority of residents. In this city, 46 zip codes have more tenants than homeowners. New York comes close second with 44 renter-dominated zip codes. 

Resources:

“Renting Out the Neighborhood: 101 Zip Codes Switch From Homeowner to Renter Majority,” by Andrea Neculae (RentCafe, 2022)