Texas tops list of renter-majority cities

AUSTIN – College Station and Killeen rank first and third, respectively, on a recent Census Bureau list of cities with the largest percentage of renters.

“Texas is a young state in terms of demographics,” says Real Estate Center Chief Economist Dr. Jim Gaines. “During the last five to six years, a record number of young people have moved here looking for work. More than 50 percent of the state’s population is 34 years old or younger.”

Nearly 60 percent of residents in College Station, home to Texas A&M University, are renting their home. 

In Killeen, 56 percent of residents are in rental housing. Around 67 percent of residents are affiliated with Fort Hood, the world’s most populous U.S. military installation.

“Any city with a large university or major military presence will have a large percentage of renters,” Gaines says.

Across the nation, 2015 saw the largest percentage of renter households since the 1960s—34.4 percent, according to a recent report by Harvard University’s Joint Center for Housing Studies. 

“Homes selling for under $200,000 are hard to find,” Gaines says. “Investors, both individual and institutional, are grabbing them, often for cash, before the owner-buyer has a chance. And mortgage credit remains tight for households with less than stellar credit scores and those with low incomes, limiting access to homes selling for under $400,000.”