The American dream of homeownership has been rehashed throughout the past decade, with more households renting than at any point in the last 55 years. Although renting was previously considered an alternative brought on solely by circumstances, one-third of this decade’s renters now say that it’s a matter of choice. In fact, according to our previous study, a diverse set of 23 large and mid-sized cities transitioned from owner- to renter-majority between 2010 and 2020.
This time, we wondered how these changes might look at the local level. So, we put each of the 50 largest U.S. cities under the magnifying glass and analyzed the renter and owner mix of each zip code. In a first-of-its-kind analysis that uses the most recent data from the U.S. Census Bureau, we wanted to see which zip codes radically changed their structure. In other words, what zip codes do renters prefer? In doing so, we found that 101 zip codes switched to renter-majority in the last 10 years.
- Renting is at the highest level in half a century, with 43.7 million households currently living in rentals.
- As many as 101 zip codes switched to renter majority in the past decade.
- Renters surpass homeowners in 41% of zip codes in the 50 largest US cities.
- Downtown areas became more popular for renters in 2020 compared to 10 years prior.
This time, we wondered how these changes might look at the local level. So, we put each of the 50 largest U.S. cities under the magnifying glass and analyzed the renter and owner mix of each zip code. In a first-of-its-kind analysis that uses the most recent data from the U.S. Census Bureau, we wanted to see which zip codes radically changed their structure. In other words, what zip codes do renters prefer? In doing so, we found that 101 zip codes switched to renter-majority in the last 10 years.
With the addition of these communities, renters represent the majority population in 41% or 632 of the 1,553 zip codes analyzed in the 50 largest U.S. cities.
101 Zip Codes Made the Switch From Homeownership Dream to Renter Haven
The number of renters in the U.S. rose by 12% between 2011 and 2020 — three times faster than the 4% increase in homeowners, according to the most recent U.S. Census estimates. Thus, it comes as no surprise that, during this time period, as many as 101 zip codes switched from owner- to renter-majority.
Meanwhile, three of the five cities that are home to the largest numbers of trending renter zip codes are in the South, with Houston, TX leading the way with a total of 16 zips. Dallas, TX and Miami, FL follow closely behind with 12 zip codes each. Breaking the Southern sway are Los Angeles, CA and Chicago, IL with 14 and 12 zip codes, respectively.
Zip Codes with Highest Shares of Renters
As of 2020, renters are the majority in 632 zip codes around the U.S. In fact, in five U.S. zip codes located in New York City; Nashville, San Francisco; Dallas; and Fort Worth, the population is exclusively made up of renters.
Los Angeles, CA, however, is the city that boasts the most zip codes (46) where renters represent the majority of the population, followed closely by New York, NY (44). As a comparison, the cities with the least renter-dominated zip codes are Colorado Springs, CO and Mesa, AZ, with only two and three zips, respectively.
Zip Codes with Highest Share of Renters
Zip code 94130 in San Francisco, also known as Treasure Island, is home to 2,100 residents, all renters.
Los Angeles Area Zip Codes by Renters Share
- Zip code 90010 remains renter dominated and registers a 45.3% growth in renter share, from 72.3% in 2011 to 82.8% in 2020.
- Zip code 90014 boasts an overwhelming renter majority of 97.6% and an increase of renter population of 76.3% since 2011.
- In zip code 90013, the renter share skyrocketed up to 90.3%, making it the 10th trendiest zip code nationwide.
Andrea Neculae is a creative writer at RentCafe, a nationwide apartment search website that enables renters to easily find apartments and houses for rent throughout the United States.
To see this study in its entirety, please visit https://www.rentcafe.com/blog/rental-market/market-snapshots/zip-codes-where-renters-outnumbered-owners-in-the-last-decade/.