The U.S. apartment rental market is increasingly divided between circumstantial renters — those driven by financial necessity — and choice renters who value the flexibility and low-maintenance lifestyle of renting, according to StatisFacts’ Biennial Online Renter Study.
The majority of renters fall into the circumstantial category, with the largest share citing an inability to afford a home or qualify for a mortgage as the main reason they rent. This trend is particularly pronounced among younger renters aged 18 to 24, many of whom expect to stay in an apartment for four years or less.
A smaller segment of circumstantial renters are financially capable of buying a home but view homeownership as too risky in the current economy.
Meanwhile, renters by choice, who represent 45.5% of the market, tend to be less constrained by financial factors and more focused on the convenience and freedom of renting. The preference for renting as a lifestyle choice rises with both age and income. Nearly half (48%) of renters over age 45 and a majority of high-income renters paying more than $2,500 per month fall into this category, at 65.4% and 55.7%, respectively.
“This suggests that as individuals become more financially established, the convenience and lack of commitment associated with renting become more attractive than the responsibilities of homeownership,” StatisFacts said.
Over the past 14 years, the share of renters expecting to rent for more than five years has nearly doubled to 29.2%. The shift reflects growing acceptance of long-term renting, influenced by tighter lending standards following the 2008 financial crisis and, more recently, pandemic-related disruptions that delayed many households’ plans to buy homes.
However, the 2025 data shows a slight decline in the expected duration of renting, which may signal renewed interest in homeownership or greater mobility among renters.
The study also highlights the financial pressures shaping the rental landscape. A significant portion of tenants— especially Millennials and Gen Z — carry student loan debt, making it harder to save for a down payment or qualify for a mortgage. Rising home prices and inflation have further pushed many into renting for longer periods.
“The data suggests a clear shift from a renter population that largely viewed renting as a temporary solution toward one where long-term renting is becoming the new normal for a growing segment of the population,” the report noted.
“This highlights a critical need for apartment management companies to adapt their strategies to meet the expectations of long-term residents.”
According to StatisFacts, successful strategies for landlords include investing in community-building initiatives, designing resident retention programs, implementing rent segmentation for targeted communication, improving fee transparency, offering flexible payment options to attract short-term renters, and emphasizing value over price to appeal to higher-income tenants.
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