Are there a growing number of renters who choose to rent, versus buy, even though financially they would have no problem purchasing a home? We already know that homeownership rates are at historic lows as more & more Americans are choosing to rent (for various reasons). Recently, new research from Zillow looked at renters in America’s 35 largest housing markets to determine their distribution. They analyzed the self-reported credit scores and incomes of renters actively searching for a home during the first half of 2016 to assess which large housing markets have the most highly qualified renters.
- Housing markets with lower homeownership rates tend to have more financially qualified renters. But even controlling for the homeownership rate, Silicon Valley renters appear to be exceptionally qualified.
- Across the country’s largest markets, 13.6 percent of on-market renters have strong credit scores and relatively high incomes and 13.8 percent could afford to buy the median home in their market.