The number of higher-income rental households has doubled in the past decade, CNBC reports, citing Harvard’s Joint Center for Housing Studies.
High-income households drove nearly 30% of rental growth over the past 10 years, a trend—fueled by the development of luxury apartments in major metro areas—expected to continue as more baby boomers downsize. Completions of these units averaged 300,000 annually over the last two years, their highest level since the end of the 1980s.
“I think it reflects a change in attitude coming out of the housing crash and a greater appreciation for the virtues of renting,” Chris Herbert, managing director of the JCHS tells CNBC. “There had certainly been a bias toward owning being a better choice, and that is something people are weighing more carefully now.”
