Around the country, there is a major increase in renters with a slow in homeowners, and Tennessee is no exception.
The last time homeowners outpaced renters was in April of last year where there was a 1.8% increase in homeowners and a 1.3% increase in renters. Since then, the percentage of year over year renter households growth has increased to 2.7%.
Redfin, a real estate company, analyzed the 75 largest cities in the United States to see how homeowners and renter rates compared over the last year.
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The median asking rent was up 0.6% in September 2024 compared to last year, but home prices grew 6%.
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The number of renter households grew 2.7% in the third quarter of 2024 and the number of homeowners grew 0.9%.
In Tennessee's three largest cities, each saw an increase in renters and a decrease in homeowners.
What percentage of people rent in Tennessee?
Looking at the three largest cities, more people are renting in Tennessee than last year.
In Knoxville, the rentership rate was at 35.2% in the third quarter of 2023, and this year's third quarter rate was 37.1%. This was a 1.9% increase.
Memphis saw the largest increase in renters among the cities. In 2023, the rentership rate was 39.2% and it was 46.1% in 2024. This was a 6.9% increase over the course of a year.
Nashville had a 4.5% increase between quarter three 2023 and 2024. Last year had a renter's rate of 28% and this year had a rate of 32.5%.
What percentage of people own homes in Tennessee?
As there was an increase in renters, there was a decrease in homeowners over the last year.
In Knoxville, the homeownership rate was at 64.8% in the third quarter of 2023, and this year's third quarter rate was 62.9%. This was a 1.9% decrease.
Memphis saw the largest decrease in renters among the cities. In 2023, the homeowner rate was 60.8% and it was 53.9% in 2024. This was a 6.9% decrease.
Nashville had a 4.5% decrease between quarter three 2023 and 2024. Last year had a renter's rate of 72% and this year had a rate of 67.5%.
This article originally appeared on Memphis Commercial Appeal: Percentage of renters increase while homeowners decrease in Tennessee