Own to Rent to Own: A Study in Transitions

Own to Rent to Own: A Study in Transitions

A new report based on American Housing Survey data, "Housing Units that Serve Both the Renter and Owner Markets," is available on the HUD USER web site.

This study uses linked American Housing Survey data over the period 1985 - 2009 to examine the characteristics of units that change tenure between owner-occupied and renter-occupied, in either direction. It finds that the most important distinguishing characteristics are structure type and size. Single-family attached units have a higher incidence of tenure change than do single-family detached units or units in multiunit structures. Smaller units, as measured by number of bedrooms, have a higher incidence of tenure change than larger units. Units tend to maintain the same tenure for long periods of time. As one might expect, there’s a higher incidence of units that change tenure, as well as a higher incidence of renter-occupied units in general, in metropolitan areas that are undergoing rapid population growth. Rapid growth puts pressure on the renter market, as in-movers frequently rent before buying, and are often younger and more likely to rent than to own.