America’s Renters Are Moving Less Than Ever, With a Third Staying in the Same Home for at Least 5 Years

Rhea-AI Summary

Redfin (NASDAQ: RDFN) reports that 33.6% of U.S. renters have lived in their homes for at least five years, up from 28.4% a decade ago. This trend is driven by soaring home purchase costs and high moving expenses. 25.6% of renters move within 12 months, while 40.8% move between 1-4 years.

The analysis shows geographical variations, with Denver (38%), Austin (37.8%), and Salt Lake City (36.9%) having the highest percentage of renters moving within 12 months. Conversely, New York (14.9%), Los Angeles (16.7%), and Riverside (18.9%) show the lowest mobility rates. Notably, rental tenure patterns vary by generation, with 34.1% of baby boomers staying in the same home for 10+ years, while 52.4% of Gen Z renters moved within a year.

Positive

• Record number of new apartments entering the market, potentially creating favorable conditions for renters in 2025
• Rents have remained relatively stable over the past two years

Negative

• Monthly mortgage payments have nearly tripled over the past decade
• Decreased renter mobility across all 50 most populous metros compared to a decade ago
• High moving costs and broker fees in major cities discourage tenant mobility

Insights

Real Estate Market Analyst

<p>The surge in long-term rental tenancy reflects a fundamental shift in the U.S. housing market dynamics. With <money>30-year mortgage payments</money> nearly tripling over the past decade and current rates above <percent>6.5%</percent>, the transition from renting to homeownership has become increasingly challenging. The <percent>33.6%</percent> of renters staying put for 5+ years, up from <percent>28.4%</percent> a decade ago, signals a structural change in housing mobility patterns.</p><p>The geographical disparities are particularly telling - high-cost markets like New York and Los Angeles show the longest tenant retention, with <percent>32.6%</percent> and <percent>27.8%</percent> of renters staying 10+ years respectively. This contrasts sharply with pandemic boom markets like Austin and Denver, where shorter tenancies prevail. The upcoming wave of new apartment supply in 2025 could further entrench these patterns by keeping rent growth subdued.</p>

Demographics Expert

<p>The generational divide in rental patterns presents important insights into evolving housing behaviors. Baby boomers demonstrate remarkable stability with <percent>56%</percent> maintaining 5+ year tenancies and <percent>34.1%</percent> exceeding 10 years. This contrasts sharply with Gen Z, where <percent>52.4%</percent> move within their first year. These patterns reflect not just age-related preferences but broader economic constraints and lifestyle changes.</p><p>The trend toward longer tenancies across all major metros, coupled with significant regional variations, suggests a reshaping of traditional mobility patterns. Markets that saw pandemic-era population influxes like Denver and Austin maintain higher turnover rates, while established coastal markets show increasing tenant entrenchment, reflecting both market maturity and affordability constraints.</p>

Redfin reports renters move most often in Denver, Austin and Salt Lake City. They stay put longest in New York, Los Angeles and Riverside.

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — A third (33.6%) of U.S. renters have lived in the same home for at least five years, up from 28.4% a decade ago. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

While the majority of renters move within five years—including 25.6% moving within 12 months and 40.8% moving between 1-4 years—the soaring cost of buying a home has pushed many to stay put for longer. The high cost of moving, or paying rental brokers in cities like New York, has also discouraged renters from moving regularly.

Nearly one in six (17%) renters had lived in the same property between 5-9 years in 2023, compared to 14.4% in 2013. Nearly the same number (16.6%) stayed in the same home for 10+ years, compared to 13.9% a decade earlier.

“Monthly mortgage payments have nearly tripled over the past decade, preventing many renters from being able to buy a home,” said Redfin Senior Economist Sheharyar Bokhari. “Rents spiked during the pandemic, but have stayed relatively flat over the past two years as home prices and mortgage rates continued to climb. That has encouraged renters to stay in the same home, where they are less likely to face major rent increases. The recent construction boom has also led to a record number of new apartments hitting the market, keeping rents down and setting 2025 up as a renter’s market where more Americans will choose to rent, or remain renters.”

Older renters more likely to stay in the same home longer than younger renters

More than a third (34.1%) of baby boomers have lived in the same home for at least 10 years, the most of any generation, while 56% have stayed put for at least five years.

At the other end of the age spectrum, more than half of Gen Z renters (52.4%) had lived in their home for less than a year in 2023, the highest share among the generations.

Metro-level highlights:

The 50 most populous U.S. metros are included in this section

• Renters move most often in metros which became popular during the pandemic, including Denver, where 38% of renters stayed put for 12 months or less in 2023. That’s the highest share of the 50 most populous U.S. metros. Next come Austin, TX (37.8%) and Salt Lake City, UT (36.9%).
• Renters stay put longest in metros where the cost of buying a home is out of reach for many, led by New York, where just 14.9% of renters moved in 12 months or less in 2023. Next came Los Angeles (16.7%) and Riverside, CA (18.9%).
• Renters move less often than a decade ago in all of the 50 most populous metros in Redfin’s analysis.
• At least one in five renters stayed in the same home for more than 10 years in five of the top 50 metros: New York (32.6%), Los Angeles (27.8%), San Francisco (26.4%), Providence, RI (20.9%) and Riverside, CA (20%).
• Less than one in 10 renters stayed in the same home for more than 10 years in 11 of the top 50 metros, led by Austin, TX (6%), Raleigh, NC (8.2%), Orlando, FL (8.2%), Jacksonville, FL (8.8%) and Denver (8.8%).

To view the full report including charts, methodology and full metro-level insights, please visit: https://www.redfin.com/news/renter-tenure-2024

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241230968972/en/

Contact Redfin

Redfin Journalist Services:

Kenneth Applewhaite

press@redfin.com

Source: Redfin

FAQ

What percentage of U.S. renters have stayed in their homes for 5+ years according to RDFN's latest report?

According to Redfin's report, 33.6% of U.S. renters have lived in the same home for at least five years, an increase from 28.4% a decade ago.

Which U.S. cities have the highest renter turnover rates in 2023?

Denver leads with 38% of renters moving within 12 months, followed by Austin (37.8%) and Salt Lake City (36.9%).

What cities show the lowest renter mobility rates according to RDFN's analysis?

New York has the lowest mobility with only 14.9% of renters moving within 12 months, followed by Los Angeles (16.7%) and Riverside (18.9%).

How do generational differences affect renter mobility patterns in 2023?

Baby boomers show the highest stability with 34.1% living in the same home for 10+ years, while Gen Z shows the highest mobility with 52.4% moving within a year.

What percentage of renters move within their first year according to RDFN's latest data?

According to Redfin's report, 25.6% of renters move within their first 12 months of renting.