Are you searching for a new place to call home? Look no further than Rockford, IL. Nestled along the scenic Rock River, Rockford perfectly balances urban amenities and natural beauty. But is it truly a good place to live? In this Redfin article, we’ll explore the various pros and cons of living in Rockford, exploring its affordability, recreational opportunities, and more. So, whether you’re already looking at apartments for rent in Rockford or you’re still considering the big move, let’s dive in and discover if Rockford is a good fit for you.
Pros of living in Rockford, IL
1. Affordability
One of the most significant advantages of moving to Rockford is its affordability. The cost of living in Rockford is lower compared to many other cities in Illinois and the surrounding region. A house in Rockford costs an average of $135,000, lower than the cost in nearby Chicago ($339,450), well below the national average of $408,031. Groceries are also relatively cheap, costing 6% less than the national average, and lifestyle expenses like haircuts and movie tickets are 10% lower. With lower living costs, residents of Rockford have more disposable income to allocate toward savings, investments, or leisure activities.
2. Natural beauty
Rockford boasts breathtaking natural beauty, with abundant parks, gardens, and riverside trails. Residents can enjoy the serenity of Anderson Japanese Gardens, explore the Rock Cut State Park, or stroll along the Sinnissippi Riverwalk. The city’s commitment to preserving and enhancing its natural surroundings provides plenty of things to do if you’re an outdoor enthusiast.
3. Cultural offerings
Despite being a mid-sized city, Rockford has a thriving cultural scene. It is home to several museums, including the Burpee Museum of Natural History and the Rockford Art Museum, showcasing diverse exhibits and art collections. The Coronado Performing Arts Center hosts concerts, Broadway shows, and other live performances, offering a lively entertainment scene for residents to enjoy.
4. Strong community spirit
Rockford’s residents are known for their strong sense of community spirit. The city has numerous active community organizations, volunteer opportunities, and neighborhood events. From local festivals like the Rockford City Market to charitable initiatives, residents have countless opportunities to connect and make a positive impact.
Cons of living in Rockford, IL
1. Limited shopping options
One of the cons of living in Rockford, IL, is the limited shopping options compared to larger metropolitan areas. While Rockford does have a selection of shopping centers, including CherryVale Mall and various strip malls, the variety and range of retail establishments may not be as extensive as in bigger cities. Residents looking for high-end fashion, luxury brands, or niche specialty stores may need to travel to nearby cities for a more diverse shopping experience.
2. Harsh winters
As with many Midwestern cities, Rockford experiences long and cold winters. Sub-zero temperatures, snowstorms, and icy conditions can be challenging for those unaccustomed to harsh winter climates. However, the city offers various winter activities, such as ice skating and skiing, which can help residents embrace the season.
3. Limited job diversity
While Rockford has a thriving job market, it is worth noting that the economy relies heavily on a few key industries, such as manufacturing and healthcare. This reliance on specific sectors can make the job market less diverse, potentially limiting opportunities for individuals in particular fields. Those seeking employment in niche industries or specialized professions may find fewer options in Rockford.
4. High unemployment rate
Rockford, IL has been grappling with a persistently high unemployment rate, and this stands as a significant drawback for those considering living in the city. Currently, Rockford’s unemployment rate stands at 6.2%, surpassing the national average of 3.7%. The repercussions of a high unemployment rate can ripple throughout the community, impacting local businesses, social services, and overall economic vitality. .
Is Rockford a good place to live? The bottom line
In conclusion, the question of whether Rockford, IL is a good place to live requires a thoughtful consideration of its pros and cons. The city offers affordability, a vibrant arts and culture scene, and proximity to natural attractions, providing opportunities for an enriching and enjoyable lifestyle. However, it is important to be mindful of the harsh winters, limited job opportunities, and the challenges posed by the city’s high unemployment rate. Ultimately, the decision to live in Rockford will depend on personal preferences, priorities, and the ability to navigate the potential challenges associated with the city.
The housing nightmare continues. The National Association of Realtors (NAR) reported that existing home sales for April came in at 5.41 million, down 3.4% from the previous month and 8.6% from last year. But, the savagely unhealthy data line was that home prices are up 14.8%.
Now that we are almost in July, we can safely say the premise that once mortgage rates hit 4%, the mass panic selling of American homeowners who need to get out at all costs, driving total inventory up in the millions, hasn’t happened. In truth, that was always a terrible premise.
My nightmare scenario, on the other hand, has happened and this is bad news for everyone. Total housing inventory has collapsed to all-time lows since 2020 and because this happened during the years 2020-2024, it created forced bidding and drove prices well above my 23% five-year home-price growth model in just two years.
Now that mortgage rates have risen, demand is getting hit, while we are still showing 14.8% home-price growth data. YIKES!
NAR Research: The median existing-home price for all housing types in May was $407,600, up 14.8% from May 2021 ($355,000), as prices increased in all regions. This marks 123 consecutive months of year-over-year increases, the longest-running streak on record.
Since the summer of 2020, I have truly believed that once the 10-year yield broke over 1.94% — which means 4% plus mortgage rates — the housing narrative would change. Home prices have escalated out of control since then, creating more rate move impact damage than it would have traditionally.
Whenever rates rise, we see it impact demand, and mortgage rates are at 6% and no longer at 3%. This is real demand destruction; prices and rates are a double whammy and why I have stressed we need to get inventory higher as soon as possible. The only way this happens is higher rates.
Since March of this year, housing demand has been falling more and more, but inventory is still below the 2010,2013,2016, and 2019 levels, which is a nightmare. Because housing is shelter, people don’t sell their homes to be homeless; it’s where they live. When you’re trying to sell your home, naturally, you’re a homebuyer too.
Rates have risen at the fastest pace ever, which makes houses more expensive, so in theory, some homebuyers can’t move. Home sellers with high equity aren’t as sensitive to higher rates because they bring a more significant down payment. Inventory skyrocketing back toward historical norms of 2 million to 2.5 million, which I would find to be the best thing ever for housing, is not happening this year. NAR Total Inventory Data Back To 1982:
Getting to that historical inventory level will take more time. I have stressed that housing doesn’t move like the stock market. Homeowners are in a better financial position than stock traders, which is why the idea of mass panic selling doesn’t reflect housing reality. You don’t get a margin call at noon and are forced to sell your house in seconds. A real estate investor, on the other hand, doesn’t have that type of shelter relationship with a home, that a homeowner does.
The goal is simple: We need total housing inventory to reach a range of 1.52-1.93 million to return to normal. Currently, we are at 1.16 million. Weakness in demand, time and the massive hit to affordability will get us there, but not at the speed people promoted last October.
Remember, inventory is very seasonal, and in the next few months, the seasonal inventory will fade, but before that happens we should still break over the previous year’s high. We should all be rooting for more inventory to end this madness.
Regarding the monthly supply for housing, we want this to get above four months as soon as possible. This would be a more traditional level for the housing market; we are making some progress here but not where we want to be yet. NAR Monthly Supply Data Before This report
As a nice jump in monthly supply, we see the seasonal push in inventory tied to sales falling, which means the months of supply should increase. This is the best part of today’s existing home report.
NAR Research: Total housing inventory registered at the end of May was 1.16 units, an increase of 12.6% from April and a 4.1% decline from May 2021. Unsold inventory sits at a 2.6-month supply at the current sales pace, up from 2.2 months in April and 2.5 months in May 2021.
Additional bad news from the report is the data for days on the market. The frustrating data line during this savagely unhealthy housing market has been days on the market stubbornly staying at the teenager level. We want this to go much higher to get back to anything normal.
We recently paid a severe price on the home-price growth nationally, and as long as this data line is still at a teenager level, we will not gain the balance in the housing market we need. We need home prices to fall by 17% to return to the peak growth model for the years 2020-2024 — just to have a regular market.
NAR Research: First-time buyers were responsible for 27% of sales in May; Individual investors purchased 16% of homes; All-cash sales accounted for 25% of transactions; Distressed sales represented less than 1% of sales; Properties typically remained on the market for 16 days.
Regarding sales trends, this data line still lags the reality of the rising rate environment, so we have a lot more room to go lower in sales. When mortgage rates were between 4%-5%, it looked more like a traditional downturn in sales with higher rates, adjusting to the massive price gains since 2020.
However, at 6% plus mortgage rates, we are seeing some real demand destruction as the most significant homebuyer in America, mortgage buyers, get hit with a double whammy.
While the purchase application data four-week moving average trend hasn’t gotten to levels that I thought I would see with mortgage rates this high, which was between 18%-22% year-over-year declines, we are picking up the pace now, and that four-week average is down 16.75% year over year. Remember that starting in October this year, the comps will be much harder to work with, so year-over-year declines of 25% to 35% are in play then.
The savagely unhealthy housing market continues until we can get inventory levels to cool down pricing and hopefully reverse some of the extensive material home price damage in America post-2020. If you want more of a guide on knowing when we will see a material change in that discussion, I wrote this article recently to go over what you should be tracking. A good rule of thumb to consider is inventory between 1.52 – 1 .93 million and over four months of supply, and then we are back to a normal marketplace.
Just imagine how much more damage we would have had this year if mortgage rates hadn’t risen. I, for one, am in total agreement with Fed Chairmen Powell: we need a housing reset because nothing good happens with such savagely unhealthy home-price growth.
Of all the housing market bugaboos that haunt and frustrate wannabe buyers in this stressed, prime-time selling season of 2023 (Sky-high prices! Rising mortgage rates! Inflation and economic uncertainty!), one challenge still sits at the center of everything: finding a good home to purchase.
America’s been in a severe housing shortage since at least the earliest days of the COVID-19 pandemic, and it affects just about all else. A shortage of inventory leads to frenzied bidding wars, out-of-reach price tags, and market paralysis.
But the situation is changing, at least in some markets. And Realtor.com® decided to find out where. When it comes to home inventory levels in America, it’s both the best of times and the worst of times—it all depends on where you live.
To gain some insight into where things stand going into the crucial summer season, the data team at Realtor.com crunched the numbers to determine the metropolitan areas with the largest increases—and most substantial decreases—in available home inventory.
You can see for yourself in the table below the change in housing inventory in the 100 largest metros.
So what did we find? Well, across the country, inventory is up year over year, by a little more than 20%. But this is largely a function of the incredibly low inventory levels of the past couple of years. There aren’t more sellers coming onto the market. Instead, homes are sitting longer. And even the current bump in year-over-year inventory still puts this year below pre-pandemic levels. Nationally, the number of new listings was down 22.7% in May compared with the previous year
And the data underscores a truth that has become increasingly evident: There’s no single, monolithic housing market. Instead, real estate has become a tapestry of regional markets, each with unique patterns.
In certain regions, particularly in the more affordable pockets of the Midwest and Northeast, inventory remains tight. Despite higher mortgage rates casting a shadow over buyers and sellers alike, homes are selling at a brisk pace, prices continue to rise, and inventory remains relatively low compared with previous years.
Compare that to the West and South, where hot markets like Austin, TX, Nashville, TN, and Sarasota, FL, have seen inventory more than double compared with this time last year. These pandemic-era boomtowns have been on a roller coaster when it comes to pricing, inventory, and demand.
Nick Libert, a real estate agent with EXIT Strategy Realty in Chicago, calls this a “balanced-stagnant market.”
Elevated rates have put the brakes on the overall housing market activity, from the perspective of buyers and sellers, but a bridled demand is still very much present.
“Not a lot of people are moving,” Libert says. “Part of the reason is there’s very little to look at.”
So let’s take a look at the biggest markets to see what’s what in different parts of the country.
We found where inventory is up and down the most in the 100 largest U.S. metros by going through the Realtor.com monthly housing market data to compare inventory in May 2023 with May 2022. We selected just one per state to ensure geographic diversity. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)
Where inventory has risen the most
1. Sarasota, FL
May 2023 year-over-year active listings change: +128.1% May 2023 median list price: $549,900
What a difference a year makes.
Located on the southwestern coast of Florida, known for picturesque white-sand beaches and barrier islands along its Gulf of Mexico shoreline, the Sarasota metro experienced the biggest year-over-year jump in inventory. There were nearly 2.3 times the number of active listings, at just shy of 4,600, this May compared with last.
Unsurprisingly, homes are sitting on the market almost twice as long, now taking about 7.5 weeks to sell.
This midsized metro, which serves as the spring training destination for the Baltimore Orioles, is relatively expensive compared with much of Florida. Median list prices are about 9% above the median state price—only Miami is priced higher.
Carissa Pelczynski, a real estate agent at Preferred Shore in Sarasota, says the attitude of many of the out-of-town buyers who were driving prices up during the pandemic has shifted in the past several months.
“People are just more hesitant now,” Pelczynski says.
Also adding to the inventory glut, according to Pelcynski: Too many sellers are pricing their homes as if the market were still as hot as it was a year or two ago. (It’s not.)
2. Nashville, TN
May 2023 year-over-year active listings change: +124.7% May 2023 median list price: $580,000
Music City is the next stop on our list, with a jump in inventory almost as large as Sarasota’s. This icon of the South is home to the Grand Ole Opry and the Country Music Hall of Fame, and it’s an increasingly popular destination for buyers.
What’s especially notable about Nashville right now is that even as inventory is more than double what it was this time last year, in May the price per square foot hit an all-time high. It surpassed the previous high mark in June 2022.
Homes in Nashville are generally larger than average, with a median size of almost 2,200 square feet. It’s also about 15% more expensive than the national median price per square foot.
A recently listed, 500-square-foot condo just southeast of downtown Nashville and within walking distance of the Cumberland River is around $515,000.This newly constructed, four-bedroom townhome is on the market for about $600,000.
Watch: The Best Cities in the U.S. for Home Sellers Right Now
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3. Austin, TX
May 2023 year-over-year active listings change: +112.5% May 2023 median list price: $583,751
It seems no list of real estate superlatives is complete without Austin. The Lone Star State’s capital city had become one of the hottest markets in the country during the pandemic, with demand—and as a result, prices—exploding. Builders raced to put up homes in the area.
But when mortgage rates rose in 2022, the Austin market was one that cooled the most, with list prices falling 15% from May 2022 to January of this year. Since then, prices have been creeping back up, now at 9% below last year’s peak.
Even as prices are back on the rise, the typical Austin home is on the market for eight long weeks before selling, compared with just two weeks during the spring 2022 pandemic pump peak.
No place on our list has a larger portion of listings that have had a price reduction, with more than 1 in 3 listings having been discounted by the seller.
The number of homes available in the Austin metro is back to pre-pandemic levels, thanks in part to the boom in new construction.
4. New Orleans, LA
May 2023 year-over-year active listings change: +81.0% May 2023 median list price: $345,000
The number of homes available in the Big Easy has earned it a place on our list, with an 81% increase.
Worth noting: By this same time last year, New Orleans inventory was already back on the rise. Measuring from the inventory low point, New Orleans has also seen the number of available homes more than double.
The inventory increase hasn’t quite put it back to pre-pandemic levels, but if the upward trajectory continues, New Orleans should reach that milestone in the coming months.
And although list prices in New Orleans haven’t been as swingy as they’ve been in a place like Austin, they have crept back up—and are now less than 1 percentage point shy of the all-time high set in March 2022.
A newly listed, midcentury boathouse on New Orlean’s iconic Lake Pontchartrain can be found for about $375,000.
5. Tulsa, OK
May 2023 year-over-year active listings change: +74.1% May 2023 median list price: $369,450
There are plenty of homes for sale in Tulsa—they just aren’t the more affordably priced properties that buyers are seeking.
“We have so much more inventory right now, and we just have less buyers,” says local real estate agent Tiffany Johnson, of Tiffany Johnson Homes.
It’s a price point game, she says. “You can’t find anything under $150,000, and anything under $300,000 is selling quickly.”
The market has shifted a lot since last year, especially for sellers who now face more competition.
“The buyers who are in the market are very serious. They will make a move quick, but they have so many houses to choose from, so [sellers and agents ] have to be almost perfect,” Johnson says. “They have to find ways to actually market these homes now.”
Rounding out the top 10 metros where the number of homes for sale has increased the most is Raleigh, NC, at 72.7%; Wichita, KS, at 59.8%; Las Vegas, at 57.5%; Greenville, SC, at 57.1%; and Omaha, NE, at 54.4%.
Where inventory is down the most
1. San Jose, CA
May 2023 year-over-year active listings change: -35.3% May 2023 median list price: $1,530,000
Topping the list of places where inventory is tightest is Silicon Valley’s San Jose. The tech hub is one of the most expensive metros in the nation, with a median price tag of $1.5 million.
Posing another hurdle for buyers: The number of homes for sale is still near record lows. The metro area, with more than 2 million people, had fewer than 1,000 homes for sale in May.
Tuan Tran, a Realtor® at Home Page Real Estate in San Jose, sees changes in this unique and wealthy home market amid turbulence in the tech business.
“Now I see a lot of investors holding back,” Tran says, adding that they are waiting to see whether a tech recession runs deeper. “Inflation is still high. Paychecks haven’t gotten much bigger.”
2. Hartford, CT
May 2023 year-over-year active listings change: -26.0% May 2023 median list price: $424,925
Hartford topped our list of markets that will dominate in 2023, and the low home inventory seems to be proving us right.
Buyers from around the Northeast have poured into the “Insurance Capital of the World,” about 90 minutes southwest of Boston and 2.5 hours northeast of New York City, due to the reasonably priced homes for sale and good jobs available.
The city has the fewest price reductions of any city, with only 1 in 14 listings with a markdown.
In another sign of the market’s strength, Hartford boasts the fastest-selling homes of any place on our list, with the typical home spending just 19 days on the market. That’s less than half the national median time of 43 days in May.
3. Milwaukee, WI
May 2023 year-over-year active listings change: -23.4% May 2023 median list price: $374,950
The housing markets in many traditionally affordable, Midwestern cities, like Milwaukee, have continued to chug along, while other pricier markets have sputtered or stalled.
In May, there were 23% fewer homes for sale than the year before. And the median home in Milwaukee is selling in 29 days, just four days more than the all-time low of 25 days in May 2022.
Another indicator of the overall strength of the Milwaukee market: The relatively small portion of homes that have had a price reduction. Only 1 in 10 is marked down.
For those considering selling in Milwaukee, the metrics suggest a quick sale, likely without a price drop, is still the norm right now. Buyers might want to consider this updated, three-bedroom, two-bathroom Cape Cod for about $225,000.
4. Dayton, OH
May 2023 year-over-year active listings change: -20.3% May 2023 median list price: $234,950
Dayton, a Rust Belt city bout an hour northeast of Cincinnati, is the most affordable of all the cities on our list, with prices 45% below the national median. The “Gem City” is home to the National Museum of the U.S. Air Force.
In contrast to what we’ve seen in the markets that got hot during the pandemic pump, prices in Dayton have been steady: no big swings up or down, but a rather steady and slight incline.
Dayton’s median listing price per square foot in May was up 6.7% year over year.
Buyers can find big deals in Dayton. This four-bedroom, 2.5-bathroom house on a third of an acre is for sale for $219,000.
5. Chicago, IL
May 2023 year-over-year active listings change: -18.5% May 2023 median list price: $376,000
The Windy City features near-record low inventory right now.
The number of available homes crept up by about 2% from April to May. But aside from the February 2022 nadir in inventory, there haven’t been this few homes on the market in Chicago in recent history. (Realtor.com listing data goes back to mid-2016.)
“Currently, what my buyers are seeing—and my sellers are experiencing—is that the north side of Chicago, along the lakefront, has, by far, the most pronounced drop,” says Libert of EXIT Strategy Realty in Chicago.
The rest of the top 10 metros with the largest decrease in inventory were Washington, DC, at -15.6%; Bakersfield, CA, at -13.2%; Albany, NY, at -13.1%; Allentown, PA, at -12.5%; and Seattle, at -10.8%.
After the steady rise in interest rates, many South Africans might have had a crash course on how severely interest charges can affect their monthly budgets.
“Interest rates can fluctuate from time to time, so it is important to know what this means for your monthly expenses, especially for the big-ticket items like home loans, vehicle finance agreements and credit cards,” said the regional director and CEO of RE/MAX of Southern Africa, Adrian Goslett.
Consumers must understand that interest is the fee a lender charges for lending money to a borrower.
“It is vital to know that interest is purely an expense. When you buy on credit, the corresponding interest charges mean you will pay double, if not triple, the original amount.
“That is why it is better to minimise your lines of credit as far as possible and only take on good debts, such as home loans, rather than bad debts like a car loan or store account,” Goslett explained.
To understand why all debt repayments have become more expensive over the last year, consumers should understand the South African Reserve Bank (SARB) meets every second month to decide whether to change the country’s interest rates to combat inflation.
“When the repo rate changes – up or down – so does the prime rate by the same percentage. This, in turn, affects all your monthly repayments,” Goslett explained.
Anyone with a home loan will notice the interest payable is included in your monthly repayment amount, so you don’t have to do the calculation yourself.
But, if you want to prepare yourself ahead of time, you can use an online calculator for an indication of how much more your monthly repayment amount will be.
If you are interested in finding out how much interest you will pay for the duration of your loan, know it is tricky to calculate because the amount is based on the outstanding balance of your loan and its remaining period.
This is known as compound interest and means the amount you owe the bank increases daily.
“There are several online calculators to help consumers calculate the interest on their home loan. For example, BetterBond has an amortisation or repayment calculator that shows how repayments are structured for the capital and interest amounts you will ultimately pay.
“This can be a helpful tool to help homeowners visualise how much they could be saving by paying a little extra into the home loan each month,” said Goslett.
He added that if, when you start paying your loan, you pay more than the minimum amount, it will reduce the amount of interest you pay over the years. It also reduces the loan’s term over which you will pay and saves you money.
“When the bank structures your repayments, they do it so that over the first few years, most of the monthly repayment goes to paying off the total interest and only a fraction to the capital amount (the actual price you paid for the property).
“If you focus on paying extra into your home loan in the first 10-odd years of the loan term, you can maximise your savings on interest charges,” Goslett explained.
Those still unsure how interest rates work are encouraged to speak to a financial advisor for further insights.
“You do not want to get into a situation where you do not fully understand the implications of taking on credit.
“While you might need to take on a certain level of debt to build future wealth, it should only be based on what you can actually afford.
“Once you have worked that out, speak to a real estate professional to find out what homes are available in your price range,” Goslett concluded.
Building projects are facing longer timelines due to a shortage of supplies such as appliances, flooring materials, hardware and lumber, and builders are finding some clever ways to pass the associated costs onto home buyers.
Builders have reported difficulty in securing appliances such as air conditioners, refrigerators and washing machines for new homes due to supply chain disruptions resulting from the COVID-19 pandemic, and prices are rising because of that, BUILDER reported.
In a survey by Meyers Research in July, almost half of all builders said they faced disruptions to their supply lines, and 80% of 300 division presidents in a survey in August said those challenges are likely to impact their sales plans in 2021.
“When flooring is delayed, we have to rework our schedules to allow for other things to progress, or we have to put the home on hold and wait for the material or reselect something that is available at the time,” Jon McReynolds, Garman Homes division president in Raleigh, N.C., told BUILDER.
Meanwhile, the increase in the cost of lumber has added approximately $16,000 to the cost of building a single-family home since April, the National Association of Home Builders says. In response to this McReynolds said Garman has adjusted the price of its new homes at the community level, while lot premiums now also cost more.
Some builders have resorted to using the escalation clauses in their contracts, so that customers will have to pay the additional costs if prices rise by a certain percentage.
Other builders have smarter ideas to offset the rising costs for buyers. For example Meritage Homes is offering to scale back on upgrades for new homes, so buyers can choose from just a few product collections at the same price point, instead of paying more. It used to offer 56 different dishwashers for instance, but now only provides a choice of six models that are well-stocked.
“We’re going to have a lot more success in being able to procure those dishwashers, for example, than we are some of [Whirlpool’s] slower-selling, more expensive models,” Steve Hilton, chairman and CEO of Meritage Homes, told BUILDER. “That goes on and on for every component of the house, whether it’s door locks, plumbing, fixtures, carpeting, or tile.”
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
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Evelyn Arceo holds down a full-time job as a baker at Universal Studios Hollywood, earning $19 an hour. But even when she gets a few hours of overtime at the theme park, the single mother of four can barely afford the rent of her one-bedroom apartment in Panorama City.
On her salary, buying a home is out of the question.
Already, her monthly rent of $1,300 is “just too expensive at this point,” Arceo said, with late fees of $40 to $50 compounding her financial plight. “I don’t think I’ve ever been on time on my rent.”
Arceo’s situation is common in California, which is among the nation’s leaders in renter-occupied housing. In the Golden State, 45.5% of housing units were occupied by renters in 2020, a small increase from the 44% rate in 2010, according to newly released data by the U.S. Census Bureau.
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California was second only to New York, where 49.7% of the housing units are renter occupied. The District of Columbia was an outlier, at 61.7%.
Nationwide, the rate of renter-occupied housing units — 36.9% — is at its highest point since 1970.
“The growth of renter-occupied units continues to outpace the growth of owner-occupied units,” the Census Bureau said in a statement.
The states with the lowest renter rate — and therefore the highest owner-occupied rates — were West Virginia, at 27.4%, and Maine, at 28.9%.
Hans Johnson, a demographer at the Public Policy Institute of California, said the new data were “not shocking.” California’s high rate of renters can be attributed mostly to “the high cost of housing,” Johnson said.
The annual income needed to buy a home in Los Angeles rose last year beyond $220,000, according to a study by the residential real estate firm Redfin. With higher mortgage interest rates and inflation cutting into household incomes, the ability to own a home is increasingly out of reach for residents in Los Angeles, where the median annual household income in 2020 was just over $65,000.
High housing costs are also a factor in putting California near the bottom in another category: the rate of single-occupancy households.
New data from the Census Bureau show that more than a quarter of all households in America — 27.6% — had just one occupant in 2020. The rate of solo occupancy is more than three times the recorded level in 1940, 7.7%.
A Times analysis found that California ranked 49th of the 50 states in the rate of single-occupant dwellings, with 23% of households occupied by just one person — a rate that has remained steady for about 20 years. Only Utah had a lower rate, at 20%.
North Dakota had the highest rate of single occupancy, 32.8%. The District of Columbia’s rate was an astronomical 43.7%.
In states other than California, “where rents are much lower or the opportunity to buy a house is better, it’s not as difficult for a single worker” to live alone, Johnson said.
Another factor is California having a “larger immigrant population than in the rest of the U.S.,” according to Johnson. “It is more common for immigrant families to live in multigenerational households,” he said.
Utah has the lowest rate of single-occupant homes because the state has a high marriage rate and an uncommonly high number of children per household, Johnson said. He attributed those trends partially to Mormon residents, who make up well over half of the state’s population.
The increase in people living alone coincides with higher social isolation, a worrying trend outlined by U.S. Surgeon Gen. Dr. Vivek Murthy in a recent report.
“Our epidemic of loneliness and isolation has been an underappreciated public health crisis that has harmed individual and societal health. Our relationships are a source of healing and well-being hiding in plain sight — one that can help us live healthier, more fulfilled and more productive lives,” Murthy said.
Such isolation increases the risk of premature death by more than 60% and includes higher risks of heart disease, stroke and dementia, according to the report.
To counter the increased isolation, “communities must design environments that promote connection,” the report said, and “invest in institutions that bring people together.”
While more Americans are living alone, Arceo, 32, worries about providing her children a home where they can enjoy some space for themselves.
With a 14-year-old son in the throes of adolescence and a 12-year-old son entering that stage, “they need their privacy,” she said.
“It’s insane to say that I work for this company and can’t afford to give my kids a proper living,” Arceo said.
She has worked as a baker for the theme park for eight years, but Arceo notes that “I was homeless for the first year working at Universal,” when she was forced to live with her then-three children in hotels, friends’ homes, wherever they could.
With the bakery short-staffed, she has recently picked up “at least an hour of overtime a day,” but it hasn’t been enough, forcing her “to choose whether I pay my car insurance or my rent,” she said.
Johnson, the demographer, pointed to possible hope on the horizon. He noted that California has reported a steady decline in population since 2020 — starting at the beginning of the pandemic. The drop has coincided with the construction of more housing, primarily in the state’s suburbs and exurbs.
“If California continues to lose people and build housing, at some point it should make a dent in the housing deficit.”
A construction surge is not likely to make enough of a difference to change the conditions for low-wage workers like Arceo.
Looking to the future, she doesn’t see many options.
Aaron’s story concludes in April with parts two and three. In addition to that, Aaron interviews several entrepreneurs on mindset, goal setting, and strategies for success in real estate. Erik Hatch also returns to the show to share “the perfect real estate blueprint.” Tune in to today’s highlight episode for that, tips on running a real estate business, and more. Don’t miss it!
Listen to today’s show and learn:
Why you should write a book [1:10]
How to write a book with no time and no writing experience [2:40]
Aaron’s plans after leaving prison: construction management [5:43]
Where Aaron came up with “bonus time” [7:54]
Building a system for success as a real estate investor [8:50]
Scaling to 1,000+ flips with a home-building system [12:04]
An example of how entrepreneurs will always find a way [17:32]
When Aaron found his second chance at the foreclosure auction [20:18]
Three things any agent can do to set themselves up for success [22:26]
A simple plan for success in real estate sales [23:02]
Advice for real estate agents: practice your sales skills [28:21]
The mindset shift that supercharged Victoria’s business [29:19]
Advice for new real estate agents [34:19]
The pros and cons of the VA loan [35:40]
David’s advice on getting started with real estate investing [37:23]
How far ahead to plan your vivid vision [39:23]
The power of the vivid vision [44:49]
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
If you follow us on TikTok or Instagram (@mortgageeasier), our Employee Spotlight may look familiar. Kristen Karam works in our Marketing department as one of our Social Media Strategists creating the fun content you’ve all come to know and love. We sat down with Kristen to learn more about her; take a look below.
Where are you from originally? I’m originally from upstate NY. I went to college in LI at Stony Brook University before ending up in CT.
What brought you to Total Mortgage? I joined total mortgage because I love the work environment. Before my 1st interview, I could tell that Total Mortgage truly cares about its employees. I have never felt more supported than I do here at Total Mortgage. I am so grateful to be a part of the team and to be able to work with such incredible people.
What was your first job? My first job was working as a Lifeguard in HS at the Corning YMCA in upstate NY.
What’s a fun fact about you? I’m a stand-up comedian in NYC!
Do you have any nicknames? Everyone calls me “Krick” which is short for “Kricket”. When I was like 7 I ate a cricket because some kids dared me to and since then the name stuck.
What do you enjoy doing in your free time? I love practicing guitar, writing jokes, hiking, reading, and playing call of duty.
What’s one thing you’re proud of? Buying my first house/ investment property at age 25 with my girlfriend Annie. You can read about that here.
What is the first thing you would do if you won the lottery? I would use it to invest in Real Estate and go on vacation to the Maldives.
What’s on your road trip playlist?
Earth, Wind, and Fire
Peter Frampton
Hootie & the Blowfish
Kendrick Lamar
Stevie Nicks
Tyga
SZA
Tch N9ne
ODESZA
Red Hot Chili Peppers
The Eagles
If someone were to come to your town, what is one local spot you would send them to & why? I was born in Elmira, NY. Unfortunately, there isn’t much left there now. I would recommend my favorite pizza place, Pudgies! They have the best pizza I have ever had in my life.