This report presents data from the 2009 American Community Survey (ACS) on rental market conditions, including share of occupied housing, housing costs, housing cost “burden,” and vacancy rate at the national level and for metropolitan statistical areas (metro areas).¹

Rental housing is catapulting to the top of the national housing agenda, The past 30 years have witnessed a housing policy that has been focused on promoting homeownership. The large gap between the number of renting households and the units that they can afford will only grow as foreclosures persist and home mortgages become increasingly scarce for all but the most qualified buyers.² Consequently, rental housing is getting a second look as an important component of a national housing policy.³ A high rental vacancy rate coupled with a low share of homes that are renter-occupied generally implies more housing choices available for renting households. The share of burdened households can be lower in such markets. Conversely, a low rental vacancy rate in a market with a high percentage of renter households can signify a tighter rental market, fewer housing choices, and more affordability problems, particularly for low-income households. In these markets, the shares of burdened renters are often higher.

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¹ For a detailed explanation of the metropolitan statistical areas in this report, go to <www.whitehouse.gov/omb/assets/omb/bulletins/fy2009/09-01.pdf>.
² Fannie Mae in a February 26, 2010, letter to lenders entitled “An Introduction to Fannie Mae’s Loan Quality Initiative” outlines rigid procedures to which lenders wishing to sell it mortgages must adhere, including borrower disclosure of all liabilities on the final loan application, as well as new emphasis on providing sound monthly debt to income ratios at the time of the delivery of the mortgage to Fannie Mae.
³ The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the Obama Administration to develop a proposal for housing reform by early 2011, including restructuring Fannie Mae and Freddie Mac, The U.S. Department of Housing and Urban Development (HUD) expects that the promotion of rental housing will be a cornerstone of the proposal. In a July 21, 2010, article in The Washington Post, HUD Secretary Shaun Donovan stated “While we continue to promote affordable homeownership, for many Americans renting will continue to be the only or preferred option.”