In a recent report, it was found that cities in California’s Central Valley are among the highest when it comes to the amount of residents who rent versus those who own their homes.
RENTCafé, a rental home research firm, released data from a 10-year study looking at how many people have rented their dwelling in the country’s largest markets.
“Stockton, just like Sacramento, has joined the list of large cities with a renter majority population. More than 21,000 homeowners have either moved to rental homes or left the city altogether,” said Balazs Szekely, real estate writer for RENTCafé. “The number of local renters in the meantime has increased by twice that amount — north of 42,000 new renters call Stockton home. In relative terms, this means boosting the percentage of renters from the 2006 share of 42.4 percent to 53.6 percent in just a decade.”
In Stockton, homeowners decreased by 21,730 from 2006 to 2016, a 19.3 percent decline, the report revealed. Modesto, though it had the highest percentage of renter growth (27.3 percent), remains a market in which homeownership is higher than renting.
“Modesto also gained a huge number of renters between 2006 and 2016, following the same trend, although it remained an owner-dominated market,” Szekely said. “There are still about 18,000 more owners than renters, translating into a 45.5 percent renter share. Modesto has lost close to 16,000 owners and gained 23,000 new renters.”
Forty-two out of the 100 largest cities in the U.S. are now occupied by a majority of residential renters, according to the report.
Sacramento had the biggest gain in the renting population over the last decade with the rental market increasing by 50,000 people.