About 43.7 million homes are occupied by renters according to a Zillow study. 13,000 people across the US were surveyed by Zillow and asked about renting, buying and selling. In 2005 the number of homes occupied by renters was 6.9 million less than today. Some of that increase is the result of the foreclosure of homes during the economic downturn but a lot are the result of choice by many renters who prefer not having the responsibility of home ownership.
Zillow does not mention the cost of homes being one of the drivers for people to choose to rent instead of own. I know that is a major factor in the North Tahoe and Truckee market as well as throughout California. In our area a great number of homes are either 2nd homes owned for vacation purposes or investment properties owned for vacation rentals and therefore are not available for long term rental. I do not know the numbers but I would be surprised if 37% of the homes and condos in our area are occupied by renters. We have a shortage of housing available for people who want to live and work in any of our communities.
What is interesting is I have been told that they are local studies that show many of the properties in the North Tahoe and Truckee area, not all, would get higher rental income if they were rented on a long term basis either seasonal or yearly. I have not seen those studies. Many people feel that the expansion and success of Airbnb is the cause of this shortage because many 2nd home owners feel that they can get a greater income from vacation rental than long term rental. That may or may not be true. I don’t know myself.
Click here to download some of Zillow Housing Study – Renters
Check in next week for the 2nd and final segment of this story – Buyers, Sellers & Homeowners.
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