House Renters Renting Longer

As home prices rise, more people renting houses are choosing to rent longer, staying for 10 years or more. Since 2017, the number of house renters who spent less than 12 months in a home before moving fell 4.5% and decreased in 70 of the 75 metros Point2Homes reviewed. 

Additionally, from 2017-2022, the number of house renters who spent five to nine years and 10+ years increased – from 16% to 18%, and 16.1% to 18.7%, respectively. 

The high cost of living, low inventory and growing home prices are likely factors that explain why more house renters are renting long-term. This is seen especially in metros located in California, where Riverside assumes the leading position in places where long-term renters are increasing (an increase of 7.2%). Las Vegas, Bakersfield and Sacramento follow close behind. 

Renters often choose to rent a house to have more space and privacy. Data shows that nearly half (47%) of all house renters opted for a roomy three-bedroom home, and less than 10% chose a one-bedroom house for rent. That’s equal to nearly 7 million renters in three-bedroom houses, followed by 4 million in two-bedroom rentals. 

Notably, Philadelphia has the third largest number of three-bedroom house renters, trailing behind only Los Angeles and Dallas. 

For those being priced out of homeownership, renting a house can be a more affordable option that provides more space and privacy. Long-term renters can also save on sharper rent hikes and moving costs. 

However, as rental prices rise, many renters are still facing affordability challenges. Paying a high monthly rent poses a challenge to making significant savings, achieving eventual homeownership and building equity and overall wealth.