{"id":505000,"date":"2024-08-05T15:54:20","date_gmt":"2024-08-05T19:54:20","guid":{"rendered":"https:\/\/www.rent.com\/research\/?p=505000"},"modified":"2024-08-05T16:10:52","modified_gmt":"2024-08-05T20:10:52","slug":"fresno-ca-rentership-rates","status":"publish","type":"post","link":"https:\/\/www.rent.com\/research\/fresno-ca-rentership-rates\/","title":{"rendered":"Fresno Has One of the Highest Rentership Rates in the U.S. \u2013 Here’s Why"},"content":{"rendered":"\n

49% of residents in Fresno are renters \u2013 among the highest shares in the nation.<\/h3>\n\n\n\n

Fresno, CA<\/a>, is an agricultural hub in California’s Central Valley known for its verdant farms, access to Yosemite, Kings Canyon, and Sequoia National Parks, and rich history. The Tower District is a historic area known for its nightlife, theaters, and a variety of restaurants and cafes. <\/p>\n\n\n\n

Fresno’s agriculture is a major part of its identity, producing a large share of the nation\u2019s fruits and vegetables. There are many farmers’ markets and farm-to-table dining options available. The city also hosts events like the Big Fresno Fair and has cultural attractions such as the Fresno Art Museum, which displays work from local and international artists.<\/p>\n\n\n\n

Fresno is relatively affordable, too, with house and rent prices below the national median. So why do so many Fresno residents rent their home? And what\u2019s going on with the housing market? Read on to learn everything you need to know.<\/p>\n\n\n\n

49% of Fresno residents are renters; 51% are homeowners<\/h2>\n\n\n\n

49% of Fresno residents rent their home \u2013 the fourth-highest share in the country.<\/strong> 51% of residents own their home. Nationally, the average rentership rate is 34%.<\/p>\n\n\n\n

In most cases, high rentership rates are generally tied to the housing market. The more expensive housing is, the higher rentership rates usually are. You can see this at play in metros like San Francisco and San Diego, where the median sale price sits at over $1 million<\/a>. <\/p>\n\n\n\n

However, Fresno is somewhat of an outlier in the dataset<\/strong>; it\u2019s not nearly as expensive as coastal metros, but almost a majority of residents are renters. The median sale price<\/a> for a home in Fresno<\/a> is $387,640, well below the national median. <\/p>\n\n\n\n

One reason for Fresno\u2019s surprisingly high rentership rate may be because over 20%<\/a> of residents in Fresno County live below the poverty line \u2013 nearly double the statewide share \u2013 making it challenging for many to own a home. This comes on top of a recent surge in prices and a 126% rise<\/a> ($203,000) over the past decade, far above the 102% rise nationally. <\/p>\n\n\n\n

The newly-released \u201cOne Fresno Housing Strategy<\/a>\u201d aims to improve access to housing, with some early success<\/a>. <\/p>\n\n\n\n

Unfortunately, renters won\u2019t see as much of a reprieve as you would expect; Fresno rent prices have risen dramatically in recent years. Fresno topped the nation<\/a> in rent growth in 2021, and has only increased since.<\/p>\n\n\n\n

What\u2019s happening with nationwide rentership rates? <\/h2>\n\n\n\n

Nationwide, the rentership rate rose 1.9% year over year to 34.4% in the second quarter of 2024, meaning over one-third of Americans are renters. In contrast, homeownership saw a modest 0.6% increase, but remains much more common at 65.6%.<\/p>\n\n\n\n

This is the third-straight quarter that rentership outpaced homeownership. The last time this happened was in 2022, when mortgage rates rose to the highest level since 2008<\/a>. Rentership consistently outpaced homeownership from 2006-2017, as well. <\/p>\n\n\n\n

Why are more people renting?<\/h2>\n\n\n\n

Rentership rates vary widely throughout the country and are generally correlated to house prices \u2013 the more expensive houses are, the more people will be pushed into renting. <\/p>\n\n\n\n

One reason for the increase in rentership is because homeownership is historically unaffordable<\/a> and showing little sign<\/a> of improving. Sale prices are also growing much faster than rents: 4% year over year compared to 0.7%. Nearly two in five<\/a> renters don\u2019t think they\u2019ll ever own a home.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

Another reason is because rental supply has more or less kept up<\/a> with increasing demand. New apartment construction skyrocketed to record levels during the pandemic and has only now started to slow<\/a>, helping keep rent price growth low<\/a>. <\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

The U.S. has also been adding more renter households than homeowner households since 2022. The number of renter households grew at the second-fastest pace since 2015, while the number of homeowner households grew at the slowest pace since 2022.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

Which U.S. metros have the highest share of renters? <\/h2>\n\n\n\n

Rentership rates are the highest in expensive coastal metros like Los Angeles (53%) and San Diego (52%), where house prices regularly surpass<\/a> $1 million. Prices are also tied to available rental supply.<\/p>\n\n\n\n

Metros with the highest share of renters<\/h3>\n\n\n\n
Metro<\/strong><\/td>Rentership rate<\/strong><\/td>Homeownership rate<\/strong><\/td><\/tr>
Los Angeles, CA<\/a><\/td>53.0%<\/td>47.0%<\/td><\/tr>
San Diego, CA<\/a><\/td>52.4%<\/td>47.6%<\/td><\/tr>
New York, NY<\/a><\/td>50.1%<\/td>49.9%<\/td><\/tr>
Fresno, CA<\/a><\/td>49.0%<\/td>51.0%<\/td><\/tr>
Austin, TX<\/a><\/td>46.3%<\/td>53.7%<\/td><\/tr>
San Jose, CA<\/a><\/td>44.8%<\/td>55.2%<\/td><\/tr>
Honolulu, HI<\/a><\/td>42.5%<\/td>57.5%<\/td><\/tr>
San Francisco, CA<\/a><\/td>41.8%<\/td>58.2%<\/td><\/tr>
Las Vegas, CA<\/a><\/td>41.6%<\/td>58.4%<\/td><\/tr>
San Antonio, TX<\/a><\/td>40.9%<\/td>59.1%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Which U.S. metros have the lowest share of renters?<\/h2>\n\n\n\n

In particularly affordable metros, like Worcester, MA (23%) and North Port, FL (23%), rentership rates are the lowest. A lack of rental inventory and zoning restrictions<\/a> could also play a role.<\/p>\n\n\n\n

Metros with the lowest share of renters<\/h3>\n\n\n\n
Metro<\/strong><\/td>Rentership rate<\/strong><\/td>Homeownership rate<\/strong><\/td><\/tr>
Worcester, MA<\/a><\/td>23.2%<\/td>76.8%<\/td><\/tr>
North Port, FL<\/a><\/td>23.3%<\/td>76.7%<\/td><\/tr>
Albany, NY<\/a><\/td>25.6%<\/td>74.4%<\/td><\/tr>
Rochester, NY<\/a><\/td>25.7%<\/td>74.3%<\/td><\/tr>
Syracuse, NY<\/a><\/td>26.2%<\/td>73.8%<\/td><\/tr>
Cape Coral, FL<\/a><\/td>26.3%<\/td>73.7%<\/td><\/tr>
Cincinnati, OH<\/a><\/td>26.8%<\/td>73.2%<\/td><\/tr>
Hartford, CT<\/a><\/td>27.2%<\/td>72.8%<\/td><\/tr>
Richmond, VA<\/a><\/td>27.7%<\/td>72.3%<\/td><\/tr>
Albuquerque, NM<\/a><\/td>27.7%<\/td>72.3%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Methodology<\/h2>\n\n\n\n

Based on a Redfin analysis<\/a> of U.S. Census Bureau data for the 75 largest U.S. metros. A renter household is defined as one where the head of the household reports to the Census that they are renting out the property. A homeowner household is one where the head of household reports they own the property.<\/p>\n","protected":false},"excerpt":{"rendered":"

Rentership rates are rising nationwide, as housing continues to be unaffordable. Fresno has one of the highest renter populations: 49% of people are renters. What\u2019s behind this? <\/p>\n","protected":false},"author":1022,"featured_media":505002,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[250,19835,19832,19828],"tags":[],"topics":[202],"renters":[],"cities":[],"propertymanagement":[],"class_list":["post-505000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industry-trends","category-renting-trends","category-research","topics-news-trends"],"acf":[],"yoast_head":"\nNearly Half of Residents in Fresno are Renters: Why? | Rent. Research<\/title>\n<meta name=\"description\" content=\"Rentership rates are rising nationwide, as housing continues to be unaffordable. In Fresno, 49% of people are renters. 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