Markets & EconomyMortgage

Where are qualified homebuyers opting to rent instead?

Zillow Renter Profile analyzed largest US metros to find renters-by-choice
  • The top four cities where renters are able to afford and qualify to buy a home are in California.
  • In Houston, the homeownership rate is 59 percent, and it has the smallest share of renters who qualify to buy a home.
  • Of all the metros covered in both sets, Detroit has the highest homeownership rate, at 68 percent.

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San Jose/ Shutterstock People throughout the nation continue to rent because they cannot afford to purchase a home, right? Not necessarily, according to a new Zillow report, which says 14 percent of renters could afford and qualify to buy a home throughout the nation's largest rent-friendly metros. Renting is often a choice, and real estate agents know all too well the impact it has on the housing market. According to Zillow's financial qualifications analysis reported in the Renter Profile, California cities are home to the largest percentage of renters who are able to purchase a property. San Jose, San Diego, San Francisco and Los Angeles are some of the most highly in-demand rental cities where its residents can very likely purchase a property if they wanted, according to Zillow. "When faced with hurdles of high prices and low inventory, first-time homebuyers are renting longer than ever before, even if they are qualified to buy," Zillow chief economist Dr. Svenj...