The American Dream of homeownership fades as more people opt to rent in high-priced areas.
IRVINE, Calif., June 29, 2016 — HomeUnion, an online real estate investment management firm, has released a list of the most expensive places for renters-by-choice. HomeUnion analyzed zip codes where more than 25 percent of the submarket’s real estate is rental stock, and those households have a median income in the 75th percentile, according to data compiled by HomeUnion, the U.S. Census Bureau and Maponics.
“Our list of the high-priced neighborhoods and submarkets for renters-by-choice indicates an ongoing shift in preferences among an affluent portion of the U.S. population,” explains Steve Hovland, director of research for HomeUnion. “An increasing number of people are renters-by-choice, opting to live within walking distance or a short commute of their office building, workplace, university, community services or nightlife, instead of the suburbs. In other words, the American Dream of homeownership continues to fade, while renting by choice is an expanding reality for a large segment of the population,” he adds.
Data from the Joint Center for Housing Studies of Harvard University supports HomeUnion’s findings. In the Joint Center’s 2015 Housing Vacancy Survey, renter households soared nearly 9 million from 2005 to 2015, the largest increase over any 10-year period on record. As of the end of last year, about 32 percent of U.S. households occupied rental housing.
Here’s a list of the 20 zip most expensive zip codes for renters-by-choice in the U.S.:
|Metro Area||Zip Code||% of Renter Households||Median Household Income||Average SFR Rent||Submarket, City, or Neighborhood|
|New York, NY||10007||38%||$204,822||$8,762||TriBeCa|
|San Francisco||94105||34%||$151,879||$4,980||FiDi/Rincon Hill|
|Northern New Jersey||07310||46%||$143,846||$2,910||Newport-Jersey City, NJ|
|Washington, DC||20171||27%||$142,488||$2,462||Herndon, VA|
|Los Angeles||90266||25%||$139,898||$6,323||Manhattan Beach|
|San Jose, CA||95014||27%||$129,371||$4,384||Cupertino, CA|
|San Diego||92130||25%||$126,841||$3,988||Camel Valley|
|Boston||02467||25%||$120,993||$4,070||Chestnut Hill, MA|
|Orange County||92625||26%||$119,091||$5,109||Corona Del Mar, CA|
|Dallas/Fort Worth||75205||29%||$108,973||$4,268||Highland Park|
|Philadelphia||19010||26%||$104,337||$2,889||Bryn Mawr, PA|
|Raleigh, NC||27518||25%||$99,489||$1,979||Carey, NC|
|Denver||80124||25%||$99,398||$3,019||Lone Tree, CO|
HomeUnion is an online real estate investment management firm, bringing value investing to the individual investor in single-family rental (SFR) properties. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in SFR properties. The company uses a combination of data-driven proprietary analytics to incorporate over 120M homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves more than 20 locations and expanding. HomeUnion’s role spans the lifecycle of the investment transaction: from identifying sound investments; handling all aspects of acquisition; maximizing income; protecting asset value; and selling it when the time comes.