However, 22 out of the largest 100 cities are seeing more renting households. RENTCafé has released their analysis based on American Community Survey archives from the US Census Bureau’s public database. The analysis compared the number of people living in renter and owner-occupied housing units in 2006 and 2016.
The analysis found that the renter population increased by more than 23 million over the period, growing by more than a quarter. Meanwhile, the overall homeowner population increased by less than 700,000 – a virtual standstill compared to the growth in renter population.
Although the US is far from becoming a renter nation, the changes in populations were enough to shift the balance in some of the largest cities that were previously dominated by homeowners. From only 20 out of the 100 largest cities dominated by renters in 2006, there are now 42 such cities.
The analysis found the biggest change in renter share in Toledo, Ohio, where the percentage of renters increased 31.1% over the decade from 38.3% in 2006 to 50.3% in 2016. Memphis, Tenn.; Tampa, Fla.; Hialeah, Fla.; and Stockton, Calif., rounded out of the top five new renter-dominated cities in terms of renter share change.
In other large cities, the renter-homeowner population ratio has changed dramatically, despite the renter population continuing to trail homeowners. The analysis found that all large cities recorded increases in the rentership rate, with only Anchorage, Alaska; Irving, Texas; and Winston-Salem, N.C., posting decreases.
What Happened to Rates Last Week?
Mortgage backed securities (FNMA 3.50 MBS) lost -102 basis points (BPS) from last Friday’s close which caused fixed mortgage rates to move higher for the week.
Overview: The combination of a more “hawkish” tone from the Federal Reserve and very strong manufacturing, wages and jobs data continued to brighten the economic growth outlook. Bonds do not perform well in a growing economy and continued their downward trend that we have seen all year which has meant a steady upward march in fixed mortgage rates.
The Talking Fed: The FOMC voted 9-0 to keep their Fed Fund Rate unchanged at 1.25% to 1.50%.
You can read the official statement here.
They had a more noticeably more “hawkish” tone in this statement. In December they said that inflation would “remain somewhat below 2% in the near term”. That is now “Inflation on a 12 month basis is expected to move up this year”.
They also said that:
– Economy to warrant further gradual increases in rates
– Market based inflation compensation gauges rose in recent months
– Gains in employment, spending and investment has been solid.
– Janet Yellen’s last day is Saturday. Jerome Powell will be sworn in on Monday.
Jobs, Jobs, Jobs:
January Non-Farm Payrolls 200K vs est of 180K
December NFP revised upward from 148K to 160K
November NFP revised downward from 252K to 216K
The three month rolling average is now 192K!
Average Hourly Wages YOY hit 2.9% vs est of 2.6% (increase of 0.75 per hour)
Average Hourly Wage MOM 0.3% vs est of 0.3%
Average Hourly Wage is now $26.74
The headline Unemployment Rate remained at 4.1% which matched expectations.
The participation rate remained at 62.7% vs est of 62.8%
Manufacturing: The January ISM Manufacturing data was very strong and beat out expectations handily with a 59.1 vs est. of 58.8 reading. But the real story is ISM Prices Paid which shot up to a crazy 72.7 vs est. of 68.0.
The January Chicago PMI was very robust and handily beat out expectations with a reading of 65.7 vs est of 64.1. Keep in mind that ANY reading above 50.0 is expansionary and readings above 60.0 are crazy hot growth. December’s block-buster reading of 67.6 was not a fluke or error, in fact it was actually revised even higher to 67.8.