Credit: Fabio Principe/Adobe Stock
Renters in the U.S. are staying put, and they prefer bigger floor plans.
Consumers now choose to stay in rental properties for at least 10 years, with the ideal space being three-bedroom homes, according to data compiled by Point2Homes.
When compared to 2020, renters who spend five to nine or 10 years or more in the same place before moving increased by 2% and 2.7%, respectively, according to the report. The number of renters who move after just 12 months fell 4.5% and decreased in 70 of 75 U.S. metros.
“Long-term renting is gaining ground, with more house renters making the single-family home rental they currently occupy into what may be their forever home,” says Point2Homes. “Long-term and very long-term renters in California’s Riverside-San Bernardino-Ontario and Oxnard-Thousand Oaks-Ventura are leading the trend as their shares increased by more than 7% in the last five years.”
Other key takeaways…
- The shares of renters who move after less than 12 months dropped the most in Bakersfield, CA (-12.4%); followed by Tucson, AZ (-10%); and Omaha-Council Bluffs, NE-IA (-10%).
- Space is no longer a preference, but a necessity: Nearly half of single-family renters (47%) gravitate toward spacious three-bedroom homes, making them the top pick for those seeking extra room to rent, according to the latest Census data on house renter tenure.
- Rental increases can be attributed to the high cost of living, supply scarcity, growing home prices and high mortgage rates— making it difficult for renters to save for a down payment, thereby keeping them renting for longer.
The typical repeat buyer age went up to 61-years-old from 58 in 2023.
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