High-income renters are now the fastest-growing segment of the housing population, according to a study by Apartment List.
The number of households who earn six-figures and choose to rent has grown 48% over the past decade, the study found. Multi-family construction has quadrupled since 2010 and now exceeds pre-recession levels, with most of the activity on the high end.
Many high-earners increasingly value the flexibility of renting and want to live close to high-paying jobs in city centers. Many high earners are locked out of home ownership by the high cost of purchasing a home while managing student loan debt and stricter lending standards.
The rise of high-income renters has been most dramatic in mid-size, growing metropolitan areas, particularly Denver, Austin, and Oklahoma City. Growth in this category has been slower in the largest and most expensive markets, including New York, Los Angeles, and San Francisco.