By DON FENLEY

There was an eye-popping change in the Tri-Cities homeowner-renter mix in 2024, according to Census data.

The number of renter-occupied households increased by 6,778 from the previous year, while the number of owner-occupied households dropped by 5,420. The shift didn’t affect the region’s homeownership rate since there were 1,358 new households. It’s still a little north of 71%, but it adds dimension to the region’s housing affordability concerns.

The core driver of the change is ownership got more expensive. It now demands a higher percentage of the average owner’s income than the 30% recommended rate. There are two exceptions. Here’s how much homeowners are spending according to the Federal Reserve Bank of Atlanta:

• Carter – 35%
• Washington TN – 44.9%
• Unicoi – 38.3%
• Hawkins – 33.7%
• Sullivan – 30.1%
• Scott VA – 33.2%
• Washington VA – 35.1%
• Greene – 30.1%

In some cases, affordability is the difference between “we can buy this year” and “we’ll rent and wait.”

Added to the cost of owning a home, higher insurance, taxes, and maintenance is a growing trend. That’s forced many younger potential buyers out of the market. Others are comfortable with the concept of being renters.

And downsizing doesn’t always men new owners. Some older homeowners are selling and moving to rentals with lower maintenance, assisted or multi-family living arrangements.

That can reduce the number of owner-occupied households – especially if the homes they exit are converted to rentals or sit vacant longer between transitions.

This is what a high-barrier ownership era looks like. Renting becomes the default entry point for more households – not because ownership is gone, but because it now requires:

• more income resilience
• more cash savings
• more qualification power
• and more confidence in monthly carrying costs

The rise in renter households alongside a drop in owner-occupied households isn’t just a housing headline. It’s a sign of a market shifting toward payment-driven decision making, where affordability and access matter as much as price.

The big question is will the shift in the owner-renter share continue, or will affordability and ownership return?

Categories: TRENDS