Survey Highlights
“Stigmas” Against Renters
According to a survey by Apartment List, there’s an outdated notion of arrogance toward renters.
The survey reveals that nearly 30% of Americans believe there’s a negative social stigma against renters.
This belief exists among renters (33%) and homeowners (28%).
Apartment List attributes the attitude to two factors:
1) A long-held perception that success leads to homeownership
2) Economic and emotional burdens of eroding affordability
“Nearly 9 in 10 Americans equate homeownership with personal success and economic security, and the vast majority believe homeownership is the better financial decision,” the study said.
A Matter of Income
Figures from the American Community Survey show the situation is especially acute in SoCal, where high housing costs have diverted an increasing number of people into apartments.
“The supply of homes for both sale & rent has not kept up with the demand,” said Russell Lowery, Executive Director of California Rental Housing Assoc, which represents 22,000 rental providers throughout Calif.
CAR notes that only 28% of LA. County households could afford to buy a median-priced home during the first quarter of 2019.
Orange County was lower at 24%, Riverside County was 39%, and San Bernardino County peaked at 50%.
Just 51% of SoCal households could comfortably afford to buy an entry-level home during the first 3 months of 2019, CAR reported.
More Millennial Renters
Apartment living is typically associated with young renters working their way up in the world and others who are financially strapped.
However, according to Dowell Myers, a USC expert in housing growth and homeownership trends, a growing number of high-earning millennials—particularly in urban areas—prefer to rent.
Research shows high-earning renters like the idea of being near public transportation, living in an energetic urban environment with art, culture and entertainment all within walking distance.
Still, Myers notes that many people harbor an unconscious bias toward renters. “People who own homes are viewed as more responsible & are regarded as being more invested in the community,” he said.
“But most of those views are based on older values.”
The Apartment List survey reveals that the number of high-earners who rent instead of own is surging, and seniors are increasingly more likely to rent their homes yearly.
“Single-family homes are increasingly occupied by renters, making it harder to tell renters and homeowners apart,” the report said.
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