The rise of renting in the U.S. isn’t just about high housing prices, or preferences for city living, but about the flexibility to compete in today’s economy.
By Richard Florida | Citylab
The American Dream has long been defined by homeownership, but current trends suggest this aspiration is waning. The U.S. appears to be undergoing a gradual, long-term shift from a society of mostly homeowners to more of a mix of homeowners and renters. This shift is not just about rising home prices, or a greater demand for urban living, but rather the transition from the old industrial economy to the new, highly clustered, knowledge-based one.
The national homeownership rate has plummeted over the past decade, from an all-time high of 68.8 percent in 2005 to 62.7 percent in 2015. That’s lower than the rate in 1985, when homeownership stood at 63.5 percent.
