More than 1.25 million new households will be formed in 2016, as the economy and job market heat up, according to CoreLogic Chief Economist Frank Nothaft. That’ll take place even as rental vacancy rates hover near 20-year lows, Nothaft wrote in CoreLogic’s 2016 Outlook for Housing.
Researchers at the Urban Institute think the rental demand surge won’t just be a 2016 story. From 2010 to 2030, there will be five new renters for every three new homeowners, they wrote in a June research report.
The cost of rent has risen 3.7% in the last twelve months, and wages, adjusted for inflation, have grown 2.4%.