The number of U.S. renter and homeowner households grew at the same rate (0.8%) during the fourth quarter of 2024. That is the slowest growth rate for renter households since the first quarter of 2023, while growth from homeowners changed little from recent quarters, according to Redfin data.
This marks the first time in more than a year that renter and homeowner households are increasing at the same rate, according to Redfin data. The number of renter households has been growing faster for four straight quarters.
Renter households stood at 45.4 million for the last three months of 2024 and the number of homeowner households stood at 86.9 million. Redfin said home prices are 40% above pre-pandemic levels and rent prices are 20% higher, with new supply keeping rent growth at bay.
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“Owning a home used to be the crux of the American dream, and while many still consider it a rite of passage, a lot of people are opting to rent for longer because they can’t afford to buy a place of their own,” said Redfin chief economist Daryl Fairweather. “Even people who can afford to buy homes are choosing leases over mortgages, often because they want a flexible, low-maintenance lifestyle, or want to invest their money somewhere other than real estate.”
Redfin said affluent renters have become more common in nearly three-quarters of major metros since 2019. Rentership is much higher in pricey coastal markets and tends to be elevated in places where it is expensive to buy a home, the report said. In New York, 51.9% of households rented in the fourth quarter, the highest share among the 75 largest metropolitan areas. Los Angeles followed closely with a 51.5% share of renter households. Albany, New York, Fresno, California, and San Francisco were also among the markets that ranked high in this category.
The practice is least common in markets where home prices are low, such as Cape Coral, Florida, where 15% of households rent. Others include Dayton, Ohio, which has 21.2% renters, Toledo, Ohio (21.9%), Columbia, South Carolina, (22%) and North Port, Florida, (22.3%).
Overall, a third of households are renters, while nearly two-thirds own a home.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
