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In a number of states there's been a rise in “lifestyle” renters with $50,000-plus incomes seeking high-end apartments.
The number of higher-income millennials renting instead of buying a home is on the rise. The share of applications for apartments from people who earn more than $50,000 is at its highest level in five years at 39%, according to a report by RentCafe.
This year’s rental applicants are making on average 10% more than those who moved last year, the equivalent of $4,300 more in annual wages, the report says.
According to a 2020 RentCafe survey, 43% of renters who wanted to partake in homeownership last year revealed the pandemic ruined their plans. Besides soaring home prices, experts believe that rising inflation and interest rates make it increasingly difficult to save money for a down payment, the report contends.
Millennials Favor Upscale Rentals
According to the report, the increase of “lifestyle” renters and demand for high-end apartments is partially due to many millennials’ realizing the benefits of homeownership do not outweigh the difficult path to get there. In fact, 42% of millennials applied to live in upscale apartment buildings in 2021, versus 38% five years ago.
Here are the top cities for millennial lifestyle renters, according to the report:
- Macon, Georgia
- Mesa, Arizona
- Spokane, Washington
- Kentwood, Michigan
- Knoxville, Tennessee
- Columbus, Georgia
- Arlington, Texas
- Peoria, Arizona
- Bradenton, Florida
- Smyrna, Georgia
High-Income Renters Want High-end Living
Of all renter groups of typical home buying age, the share of millennials with incomes greater than $50,000 saw the fastest increase in 2021—20% more than in the previous year, the report shows.
Here are the largest cities for millennial renters with over $50,000 income, according to the report:
- Las Vegas
- Oklahoma City
- Memphis, Tennessee
- Nashville, Tennessee
- Charlotte, North Carolina
- Columbus, Ohio
- San Antonio
- Louisville, Kentucky
Compared to 2020, there are now about 50% more millennials in the $50,000 or more income bracket who applied to rent in Indianapolis. The individual median income also grew by 11% since last year, according to RentCafe.
The analysis is based on 5.9 million rental applications from 2017 to August 2021 for approximately 40,000 apartment communities. Only properties that had data available for all years and months were included.
For more information from the RentCafe report click here.
Andre Claudio is the assistant editor at Route Fifty.