Number of people making six figures who don't own homes doubles in Twin Cities metro
The number of people who make six figures and don't own a home has risen sharply in the last decade. And the trend is taking root the fastest away from the expensive coastal cities you'd expect, in places like the Twin Cities.
That's according to an analysis by the Wall Street Journal, which found the number of people who make $100,000 or more a year and rent grew from 12 percent to 19 percent nationwide between 2006 and 2017.
“More than 3 million people, who a generation ago probably would have been homeowners, are instead renting for much longer than prior generations,” said Laura Kusisto, a reporter on the project.
Kusisto said those making six figures and renting in the Twin Cities metro doubled.
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“We could have made it the poster child for our story,” Kusisto said.
But she focused in on Denver. There, she said, the trend has been a boon for landlords and developers building luxury rentals. It has also fueled a home market where investors put up cash to buy homes and then hold onto them for a long time.
“I think that one of the concerns here is that this becomes a little bit of a vicious cycle,” Kusisto said. “The more you have investors in the market, the harder it is for first-time home buyers to buy in the market.”
Another concern:
“How does this affect everyday middle class Americans for whom owning a home was the main vehicle by which you save fore retirement?” she said. “I don’t think we know the answer to that question.”
To hear more of the conversation, hit play on the audio player above.