Cities Where Renting Is on the Rise

Source: Trulia.com|| Photo: Vincent Besnault | Photodisc | Getty Images The American Dream used to include home ownership as a given, but it has gotten shaky of late. With so much instability in the real estate market, not to mention high unemployment and tight credit, renting has seen upticks around the country. In many cases, this represents a show of caution in the face of economic distress; people are loath to buy in a weak market, or they can’t get a mortgage. Trulia.comprovided a list of the top ten American cities with the largest increases in rentals by comparing change from the third to the fourth quarters of 2010. Additional data, including unemployment, median incomes, home values and rents is from City-data.com.By Colleen KanePosted 3 Mar 2011

Source: Trulia.com|| Photo: David Olsen | Getty Images Rise in renters: +5% San Diego statistics: Median income: $59,901 Unemployment: 10.1% Median house or condo value: $445,500 Median rent: $1,242 The vacancy rate for rental apartments in San Diego went down to 4.6 percent in the last quarter of 2010, from 5.0 percent the previous year, according to data from the property research company Reis.  Home prices in the San Diego metro area are expected to rise 3.5% this year, according to a forecast from Real Estate Solutions.

Source: Trulia.com|| Photo: Tetra Images | Getty Images Rise in renters: +6% Memphis statistics:Median income: $34,203 Unemployment: 10.2% Median house or condo value: $ 101,400 Median rent: $745 Many rental properties in Memphis are owned by out-of-towners, says Jim Reddy of Memphis Investment Properties, in an article in the Memphis Daily News. He puts his own company’s extra-Memphis owners at about 80 percent, including investors from New Zealand and Australia. The article also notes that in January the average home in Shelby County sold for $50,000 or less.

Source: Trulia.com|| Photo: Getty Images Rise in renters: +6% Charlotte statistics: Median income: $49,779 Unemployment: 8.7% Median house or condo value: $175,600 Median rent: $811 It’s a good time for investors in rental properties and not so good for renters in Charlotte, because increased occupancy in rentals means fewer enticements, higher rents, and possibly even shortages, The Charlotte Observer reported last month.

Source: Trulia.com|| Photo: Don Klumpp | Getty Images Rise in renters: +6% New Orleans statistics: Median income: $36,468 Unemployment: 9.1% Median house or condo value: $192,600 Median rent: $882The picture painted by the Department of Housing and Urban Development is not a bright one. Median rent has increased since Katrina—from $662 to $882 (adjusted for inflation). Supply of available, intact rentals plummeted after the storm, so perhaps this increase in rentals is a good sign for a troubled city.

Source: Trulia.com|| Photo: Denis Tangney Jr. | Getty Images Rise in renters: +6% Worcester statistics:Median income: $47,415 Unemployment: 9.5% Median house or condo value: $230,100 Median rent: $833 When single-family homes won’t sell for significantly less than their purchase price, many owners turn to renting them out, notes the Worcester Business Journal. The renters of these homes, in turn, are those reluctant to enter this home-buying market, and the high-end rental market has seen an uptick as well.

Source: Trulia.com|| Photo: WikimediaCommons Rise in renters: +8% Columbia statistics:Median income: $38,807 Unemployment: 15.2% Median house or condo value: $165,700Median rent: $756 The Columbia housing market continues to “remain in hibernation” until the third quarter of this year, according to studies by Fiserv and Moody’s Economy.com cited in a report by The Mather Company. Prices are expected to drop before possibly stabilizing by year’s end.

Source: Trulia.com|| Photo: Richard Cummins | Getty Images Rise in renters: +9% Syracuse statistics:Median income: $30,075 Unemployment: 9% Median house or condo value: $84,400 Median rent: $668 It’s the same old story you’ve heard in other cities: buyers are reluctant to risk buying in Syracuse, and New York’s loss of residence is being felt in this city, which has more than the usual amount of vacancies, says Housing Predictor.

Source: Trulia.com|| Photo: Nick Chapman Rise in renters: +10%Bakersfield statistics:Median income: $52,677 Unemployment: 11.5% Median house or condo value: $196,300 Median rent: $919 Houses are being built in Bakersfield, and perhaps they’ll even be owned by their occupants: Kern County had the most housing starts in 2010 of the Central Valley markets, reported Bakersfield Economic and Community Development. In addition, the U.S. Department of Housing and Urban Development forecasts: “Increasing population and a slowdown in the shift to homeownership are expected to support the demand for 2,400 new market-rate rental units during the next 3 years.”

Source: Trulia.com|| Photo: WikimediaCommons Rise in renters: +11% Greensboro statistics: Median income: $38,694 Unemployment: 9.6% Median house or condo value: $143,800 Median rent: $714 The number of homes for sale in Greensboro has decreased by 12% from a year ago, and the number of newly listed homes is down by 22%, according to the Greensboro Home Market Report.

Source: Trulia.com|| Photo: C.P. Kirby Rise in renters: +16% Toledo statistics:Median income: $32,325 Unemployment: 11% Median house or condo value: $92,900 Median rent: $602 Rents are up and vacancies down—so goes the by-now familiar report from The Blade in Toledo, Ohio. Vacancy rates are down at year’s end to 7.7% from 10 earlier last year. This is attributed to the region’s high foreclosure rate.

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