As rising home prices continue to keep many Americans out of the for-sale market, many are turning to single-family rentals to meet their needs for space and comfort. Although Millennials became a majority homeowner generation in 2022, nearly half still live in rentals, where they are starting families, working remotely, and building their lives. According to a recent report from online real estate marketplace Point2Homes, more than 14.2 million renters live in single-family homes, with 47% choosing three-bedroom options. That’s about 7 million renters, compared with the 4 million living in two-bedroom rentals and the fewer than 10% of renters who choose one-bedroom options. Three-bedroom rentals are becoming the new norm, especially for renters who want to stay put for longer. This trend can also be observed when looking at recent migration data, which shows renters are moving far less than in the past.
That’s obvious in the nation’s 75 largest metros: Throughout the last five years, the share of renters who move after less than 12 months decreased in all but four metros. What’s more, three metros are posting double-digit drops in the shares of short-tenure renters: In Bakersfield, CA (-12.4%); Tucson, AZ (-10%); and Omaha, NE (-10%), renters really seem to be rethinking their strategy and are staying put.
This trend works like a seesaw: If the number of renters who move after less than a year is dropping, then long-term renters are on the rise. That's because renters who don't keep moving and don’t become homeowners inevitably become long-term renters (renters who spend five to nine years in a house for rent before moving) and/or very long-term renters (renters who live in a house rental for 10+ years). Read more
