Renting is on the rise. As Colorado continues to grow, it’s important to be familiar with the different types of renters that are looking for attainable housing.
Young Singles: 29%
- The largest group of renters is the “Young Singles.” This group is also the youngest, with an average age of 26 years old. Young singles tend to have limited incomes, high rent-to-income ratios, and move around frequently.
Young Adult Roommates: 21%
- These renters are around age 28 and live in households with two or more adults. Although their income level is similar to those in Young Singles, these renters take advantage of combined incomes and opt for slightly pricier units. They tend to live in higher-end suburbs or the urban core.
- These residents are typically in their early 40s, single, and have moderate annual incomes. Despite making up 16% of the rental population, these renters are typically overlooked in discussions about housing and rental properties. They are much more likely to renew their leases at least once, staying in the same apartment for a longer period of time than younger renters.
Middle-Class Boomers: 11%
- Eleven percent of all renter households are middle-class boomers. Relying on a more modest income from their retirement savings, these boomers tend to live in smaller units in the suburbs. Middle-class boomers are typically single-person households and are the most likely to renew an expiring lease.
Older Millennials: 8%
- These residents in their early 30s are responsible for much of the demand for newer, high-end properties. Almost always single or living alone, they are drawn towards urban areas or suburban locations near large career centers.
Working Families: 6%
- At 6% of the rental population, working families largely opt for single-family rental homes rather than apartment complexes. “Working Families” have one or more children, but not always two adults. In fact, a significant portion of this group is single-parent households.
Young Couples: 5%
- Like “Working Families,” the “Young Couples” tend to be in their mid-to-late 30s and more affluent than younger millennials. These residents prefer new, upscale properties in economic boomtowns. So, even with larger incomes, they can find purchasing a home in their desired market to be challenging.
Animal Lovers: 4%
- At 4 percent of the renter population, “Animal Lovers” have two or more pets in their household. These renters tend to be in their early 30s with annual incomes averaging $65,000. Denver is an incredibly popular metro area for these renters.