Joint Center for Housing Studies, Harvard University
America's Rental Housing: The Key to a Balanced National Policy

see the
" One Minimum-Wage Earner Cannot Afford a Modest Rental Unit Anywhere in the Country" chart(2)

"Demographic Drivers of Rental Demand"
Renter households are becoming more diverse
not only because of the growing numbers
of immigrants and minorities, but also because
of the changing age structure of the population.
Meanwhile, the income and wealth disparity
between owners and renters has expanded,
especially after many upper-income renters were
enticed into buying during the recent homeownership
boom. The current rash of foreclosures will, however,
force some owners to switch back to renting.

THE SHIFTING COMPOSITION OF DEMAND
Over the decade from 1995 to 2005, the number of renter
households increased by just 2.6 million while the number of
owners jumped by 10.7 million. Demand for rental housing
slowed over the period as the last members of the baby-boom
generation moved into their peak homebuying years. At the
same time, rising house prices and lax mortgage underwriting
standards encouraged many renter households with limited
resources to make the switch to homeowning. As a result, the
homeownership rate for all age groups rose and the share of
renter households declined.
What little growth in renter households that did occur before
2005 was due primarily to the rising numbers of minority and
immigrant households, whose homeownership rates lag those
of white and native-born households. Indeed, the minority
share of renter households increased from 37 percent in 1995
to 43 percent in 2005 (Table A-3). Hispanic renters accounted
for nearly half of the minority gains, with their numbers up
34 percent over the decade.