Many multifamily renters in larger metropolitan areas have the credit score and income to buy a house, but many of them choose not to, according to a recent MultiFamilyBiz.com report. According to stats from Zillow, almost 14 percent of renters could buy a home in their target market, but instead, they’re increasing the competition for renters.
That’s good for landlords and property managers, who are now seeing a wealth of highly qualified renters occupying their properties. But condo developers may want to rethink how they’re positioning their newly built units in case this trend continues.
When it comes to high-income, good credit renters and homebuyers, not all cities and regions are created equal. Here’s how city-dwellers vary by region:
- San Jose, San Francisco, and San Diego have the highest proportion of renters, especially near tech hubs where the young wealthy are competing for apartments.
- Los Angeles, New York and Seattle also have large segments of renters who are actually qualified to buy.
- Detroit and Cleveland, which were hit hard during the recession, have lower shares of renters with good credit and high income.