Bay Area ranked highest in nation for high-income renters as a share of total renters
High-income renters are the fastest-growing housing segment in the United States.
May 22, 2019
- High-income renters are the fastest-growing housing segment in the United States. Metropolitan statistical areas with large populations not surprisingly contain the most in absolute terms, such as New York and Los Angeles.
- In recent years, the number of high-income renters in the Bay Area has substantially increased. In fact, both San Francisco and San Jose are ranked as the top two metro areas in the nation for high-income renters as a share of total renters at nearly 21% and 27%, respectively.
- Additionally, the share of high-income renters in these two metros increased by more than 10 percentage points between 2010 and 2017.
- A number of factors are responsible for this increase in high-income renters, including: lack of single family construction to meet demand, a large influx of multifamily supply, an increase of high-income earners migrating to the Bay Area, increasing barriers to homeownership and high demand to live in urban cores.
- Moving forward, this trend will likely continue in the Bay Area as long as high-paying tech talent remains and the cost of living remains high enough to prohibit households from transitioning into homeownership.
Source: JLL Research