More Renters Choosing Houses Over Apartments

More renters are prioritizing space and comfort by trading apartment life for single-family rentals, according to a report by Point2Homes. 

“Demand for single-family rentals is being driven by renters who want more space, comfort and flexibility, needs that apartment living often can’t meet,” says Andra Hopulele, Point2 author. “According to our latest report, 6 in 10 new house renters came from apartments, a five-year high that signals a major lifestyle shift.” 

In comparison, just two years ago, 3 in 10 house renters came from apartments. 

At the same time, three-bedroom homes are slowly overtaking two-bedroom houses for rent. Of the new build-to-rent completions in 2025 so far, three-bedroom rentals make up the majority (53%). 

“This surge in three-bedroom completions reflects this growing demand for larger homes,” Hopulele notes. “And, as remote work remains widespread and affordability challenges persist in the for-sale market, single-family rentals are emerging as a practical, desirable middle ground.” 

For those looking to save money, renting a house is often more affordable than buying one. Point2 found that the average rent of $1,776 was significantly cheaper than the average mortgage payment of $2,504.  

Additionally, it’s not just millennials and young families choosing single-family rentals as a step along the way to homeownership. Eight percent of new house renters moved from a home they previously owned, indicating a wider market for single-family rentals. 

“From millennials priced out of homeownership to empty-nesters seeking less maintenance, renters across demographics are increasingly turning to the BTR sector for both short-term comfort and long-term flexibility,” Hopulele concludes.