As home prices continue to grow across the country, the ability to own a home can become out of reach for many. According to a new report by RENTCafe, the amount of families with minor children who own a home decreased by nearly 3.6 million since 2006.
Using data from the 2016 U.S. Census, the report also found while homeownership for families with children is down, the number of families living rose by 1.9 million in a decade, a 16 percent increase. On the other hand, homeownership for families with kids dropped by 14 percent.
Experts looked into the cause of the rise in family renters. For a lot of families, renting became the easier and more affordable option. During the 10 year period, housing inventory dropped making the price for homes more expensive. The price for single-family homes increased 35 percent across the United States, while renting prices around the nation increased slightly less by 20 percent. Also, many families lost houses in foreclosure because of the unsteady economy.
From 2006 to 2016, home-owning families in the Chicago metropolitan area dropped 18 percent, or by 157,000 families with children. As far as renting families, the number rose 9 percent by 32,000 families with children. The price of a single-family homes in the Chicago metro area increased by 49 percent, while the rent price only increased by 23 percent.
Another factor to consider for the drop in family homeownership is the cost of raising a child. Even though the birth rate across the U.S. dropped, the cost of raising children rose in the last 10 years and continues to grow.
When it comes to where renting and owning are more popular for families, the report found a trend of high amounts of renting families in the South. Southern metropolitan areas like Charlotte and Atlanta saw the highest increase. In the Greater Charlotte Area, there was a 73 percent increase in renting families. Charlotte also saw the highest increase of homeowners with children rising by 20 percent.