SAN DIEGO — A new study by Redfin revealed that nearly half of all households in the San Diego metro area are renters.
According to the study, the top five cities with the highest percentage of renters in metro areas include:
1. San Jose
2. Los Angeles
3. New York
4. San Diego
5. Fresno
The study also found the number of renter households nationwide is growing three times faster than the number of homeowner households.
While renting is increasing, homeownership rates are dropping. According to Redfin, that's not just happening in San Diego, it's happening across the nation.
One big reason is cost. High home prices and elevated mortgage rates make renting the only option for a lot of families and young people.
"That means they're renting longer. We see renewal rates continuing to climb across the nation and also in San Diego," said Doug Ressler of Yardi Matrix, a company that analyzes real estate data.
He said an increased supply of rentals has helped the rates in San Diego remain stable.