DALLAS—Axiometrics data show that thepercentage of households that are renting has been increasing formost age groups since the housing bubble burst in 2007/2008. Thereis one significant exception, however, and renting among this agegroup has in fact trended steadily, although not dramatically,downward since the mid-2000s: the youngest adults among themillennial generation, those born in the late 1980s and early1990s.

As Generation X gave way to Generation Y among heads ofhousehold under age 25, what was a leveling-off effect amongrenters in this age cohort turned into a gradual decline. “To besure, part of the reason for this decline is attributable to therecession,” according to Dallas-based Axiometrics. “The lack ofgood jobs that have been created since the recession's end has notallowed millennials the opportunity to createtheir own renter (or owner) households.” The number of young peoplestill living at home, therefore excluding themselves from eithersingle-family home ownership or multifamly rental, since the GreatRecession has already been discussed at length, Axiometricsnotes.

“Young people are still having difficulty finding work or theyare choosing not to work and either live with parents or go tocollege,” says Axiometrics. “This helps explain why renterhousehold formation for the younger portion of the prime renter agecohorts is in decline.”