DALLAS—When the discussion of renters comes up, millennials often come to mind. They are the driving force of the rental market or so it seems. But in fact, they are not the biggest game changers when it comes to renting, according to RentCafe's newest study on the US renter profile.
Using Census data from 2009 to 2015, the statistics showed that renting is less millennial-centric and more about that demographic's grandparents. That is, empty-nest Baby Boomers account for the biggest change in the renting population—2.5 million senior households joined the renter cohort nationwide during that six-year period.
Percentagewise, the number of seniors aged 55 or older increased by 28%, versus only a 3% uptick in renters 34 or younger. When it comes to education, renters holding a bachelor degree or higher take the lead by 23% and by family type, families with no minor children saw the biggest growth rate at 21%.
Where do these new renters live? Warm-climate locations in the suburbs continue to be retirement havens. Nowhere is the increase more visible than in the segment of senior renters—39% more seniors live in the suburbs and 21% more seniors live in the cities compared to 2009. When looking at the metro level, Dallas-Fort Worth boasts the fourth biggest increase in Baby Boomer renters in the country at 46% versus 10% growth in millennial renters; both rates well above the national growth.
The national trend is confirmed also when it comes to the level of education. The largest gain of renters were people holding a bachelor degree or higher—33% in DFW metro, the seventh highest rate in the nation.
Suburban areas in DFW metro are most soughtafter by families with children (39% growth), followed closely by the families with no children (38%). The increases are lower in the urban areas: 15% and 21%, respectively, says RentCafe.
Rapid demographic expansion in the DFW metroplex is not only due to its strong local economy and job growth, but also its reasonable cost of living compared to other markets that offer comparable big city amenities and attractions. The average rent in the Dallas-Fort Worth metro area is around $1,100 per month, below the national average of $1,350.
“Dallas is one of the top favorites for Baby Boomer renters, the fourth largest increase in the country,” Nadia Balint, the author of the article, tells GlobeSt.com. “This translates into a net growth of almost 58,000 new senior renter households in Dallas metro. At the same time, developers are investing heavily in the area and targeting downsizing Baby Boomers looking for lower housing and maintenance costs, and more amenities and services, making for a great selection of lifestyle rental properties and mixed-use projects that appeal to this demographic.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
