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Examining ZIP Codes With Fastest-Growing Renter Populations

The American dream of homeownership has been hashed and rehashed throughout the past decade —especially in wake of the pandemic— with more households renting than at any point in the last 55 years, according to RentCafe's latest market report. Although renting was previously considered an alternative brought on solely by circumstances surrounding affordability prior to and throughout the pandemic, one-third of this decade’s renters now say that it is now a matter of choice. In fact, according to a previous study by RentCafe, a diverse set of 23 large and mid-sized cities transitioned from owner- to renter-majority between 2010 and 2020.

In order to determine how these changes may look at a local level, RentCafe analyzed the 50 largest U.S. cities examining the renter and owner mix of each zip code. Using the most recent data from the U.S. Census Bureau, they wanted to determine which zip codes radically changed in structure. With the main question being, "What zip codes do renters prefer?", data found that 101 zip codes switched to renter-majority in the last 10 years.

With the addition of these communities nationwide, renters represent the majority population in 41% —or 632 of the 1,553 zip codes analyzed in the 50 largest U.S. cities.

Highlights:

  • 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.
  • Of the new renter majority zip codes, 43240 in Columbus, OH saw the fastest increase in the number of renters.
  • San Antonio’s 78215 is the top trending zip code for renters in the nation, tripling its renter population in ten years.

Overall, 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.

The top 10 Zip Codes that transitioned from homeownership to renting were in:

  1. Columbus, Ohio
  2. Chicago, Illinois
  3. San Antonio, Texas
  4. Phoenix, Arizona
  5. Raleigh, North Carolina
  6. Miami, Florida
  7. Denver, Colorado
  8. Indianapolis, Indianapolis
  9. Houston, Texas
  10. Dallas, Texas

Zip Codes with fastest-growing renter populations: Downtown areas are the trendiest for renters

Many of the zip codes with the fastest-growing renter populations are located in the heart of the city. Some eight of the 20 neighborhoods that grew their renter populations by more than 80% in the past decade are in or near downtowns. Similarly, the latest report from RentCafe revealed the top neighborhoods for apartment construction showed a historic boom in centrally located areas in the last five years —a timely response to the increased demand for rentals in these locations.

Despite the growth that central areas registered in the last 10 years, the pandemic created a temporary downturn for downtowns, with many of them left vacant and desolate as workers moved from the office to home. As such, it remains to be seen if a post-COVID world will bring about a second bounceback — especially if rising numbers of renters continue to pump life into city centers.

Meanwhile, three of the five cities that are home to the largest numbers of trending renter zip codes are in the South, with Houston, Texas leading the way with a total of 16 zips. Dallas, Texas and Miami, Florida follow closely behind with 12 zip codes each. Los Angeles and Chicago rounded out the rest with 14 and 12 zip codes, respectively.

Zip Codes with highest shares of renters: Five neighborhoods exclusively occupied by 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.

First up, New York City zip code 10162 is one of the five zip codes where the entire population is renting. A tiny zip code of less than 2,000 residents in Manhattan on the Upper West Side, 10162 is home to upscale buildings dating back to as early as the 19th century.

Additionally, zip code 75251 (located in north Dallas) boasts a 100% renter share in 2020, with a 44% rise in number of residents since 2011. A small and densely populated area, Preston Hollow is mostly inhabited by young millennials, with a total population of just under 4,000. There, the rental homes built primarily in the 1990s are mostly one-bedroom apartments, and the median household income is around $80,000.

Los Angeles, 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, Colorado and Mesa, Arizona, with only two and three zips, respectively.

To read the full report, including more data, charts and methodology, click here.

About Author: Demetria Lester

Demetria C. Lester is a reporter for DS News and MReport magazines with more than eight years of writing experience. She has served as content coordinator and copy editor for the Los Angeles Daily News and the Orange County Register, in addition to 11 other Southern California publications. A former editor-in-chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington, she has covered events such as the Byron Nelson and Pac-12 Conferences, progressing into her freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, Lester is an avid jazz lover and likes to read. She can be reached at [email protected].
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