Why the "Other" Housing Market is Booming

With the consistent news about declining home values and stagnating sales, its easy to forget that, in effect, there are two housing markets in the U.S. - those for owners and those for renters. Guess which one is booming.

1 minute read

March 4, 2012, 11:00 AM PST

By Jonathan Nettler @nettsj


As Matthew Yglesias reports, a number of factors have conspired to push the purchase-price to rent ratio as low as it ever gets, and things are primed to get even worse. With a glut of jobless people living with family members who would under normal circumstances be living on their own, called "shadow" households, there is pent-up demand waiting to be unleashed on a rental market that is currently at its lowest vacancy level in a decade.

According to Yglesias, now that jobs are being created again, the storm clouds are gathering. "The country has been on a decades-long drought of large-apartment-building construction. We're now facing a perfect storm of demand, thanks to a growing population of empty nesters with busted 401(k)s looking to downsize and the huge backlog of twentysomethings who still need their first place."

So what is the solution? Unleash foreclosed homes onto the rental market? Yglesias isn't convinced. He sees new construction as the only avenue to fix the imbalance. "Unfortunately, intrusive anti-density regulations will make it difficult to build as much or as quickly as there's market demand for. Mayors looking to boost their local economies should move to deregulate and unleash the pent-up demand."

Thursday, March 1, 2012 in Slate

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 7, 2025 - Diana Ionescu

Person in yellow safety suit and white helmet kneels to examine water samples outdoors on a lake shore.

USGS Water Science Centers Targeted for Closure

If their work is suspended, states could lose a valuable resource for monitoring, understanding, and managing water resources.

May 1, 2025 - Inside Climate News

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30, 2025 - Streetsblog USA

Person stepping over hole in sidewalk.

Portland Council Tentatively Approves Sidewalk Repair Plan

The proposal would address sidewalk needs in Portland’s District 1 and District 4.

May 12 - Oregon Public Broadcasting

6-story building at Honolulu Community College.

Expanding Access to Design Education at Honolulu Community College

Honolulu Community College’s Architecture, Engineering & Construction Technologies program highlights the role of community colleges in preparing nontraditional students for careers in architectural and construction technologies.

May 12 - University of Hawai'i News

"Radiation Zone, Keep Out" sign on wood post with red Arizona desert mesa in background

Integrating Human Rights Into Energy and Extractive Sector Transitions

Why just transition efforts must move beyond economic considerations by embedding human rights principles into business practices to ensure equitable, transparent, and accountable outcomes for affected communities and workers.

May 12 - Cambridge University Press

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.