The rental insurance market is projected to exceed $100 billion in 2025 due to increasing urbanization and a growing supply of rental properties, according to The Business Research Company.
By 2029, the market is predicted to reach $128.73 billion at a compound annual growth rate of 6.3%, attributed to digital insurance platforms, awareness and education initiatives, integration with smart home technology, economic recovery and collaborations with real estate and property management firms.
Meanwhile, most U.S. renters are staying put in 2025 as leasing renewals hit an all-time high and more than 63% of renters decide not to move, further tightening supply. At the same time, 93.3% of apartments remain occupied with limited turnover.
Also in 2025, the median vacancy period jumped to 43 days as the average number of potential renters vying for vacant units increased to seven.
Data compiled by Point2Homes showed renters also 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. 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. The number of renters who move after just 12 months fell 4.5% and decreased in 70 of 75 U.S. metros, according to the report.
“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 from Point2Homes…
- 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 slideshow above illustrates the most popular U.S. cities for renters as selected by RentCafe.
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