While renting has historically been a temporary step before homeownership, it is now a long-term housing choice for many. Between rising housing costs and economic uncertainty as well as the attractiveness of the flexibility and convenience of renting, the renting journey is experiencing a seismic shift. For landlords, this generational rent trend change impacts who renters are and what they value, affecting property marketing and management strategies. Staying competitive means adapting quickly and understanding your target markets.
Key Takeaways
- Renting continues to grow as a long-term housing choice, with renter households reaching over 43 million in 2024 — up 1.9 million since 2021 — driven by affordability challenges and lifestyle preferences.
- Younger generations dominate the market, with Millennials (33%) and Gen Z (23%) making up 57% of renters. Gen Z saw the fastest growth, jumping 9% in just three years.
- The older generations of Gen X, Baby Boomers, and the Silent Generation remain a steady force, accounting for 43% of renters, as many choose downsizing and lower-maintenance living over homeownership.
Data Shows That Renting Isn’t Just a Phase Anymore
For many, renting is no longer a stop on the path to homeownership, but a long-term housing choice. In 2024, the U.S. Census Bureau reported that renters made up a third of all households, totaling more than 43 million. In three years, from 2021 to 2024, renter households rose by 1.9 million. This sharp jump is largely due to younger generations entering the housing market as renters and older generations providing a steady base by continuing to rent.
Affordability is a major driver of that growth; rising mortgage rates, home prices, purchasing costs, and even ownership expenses deter, and even prevent, many from attaining homeownership. In the Federal Reserve Board’s 2024 Economic Well-Being of U.S. Households survey, 68 percent of renters said they couldn’t afford a down payment and 49 percent said they couldn’t afford a monthly mortgage payment.
But cost is only part of the story. The same survey found that 58 percent of renters chose to rent because it was more convenient or flexible, while 39 percent said they preferred renting altogether. Renting allows people to stay mobile and live where they want. It also comes with fewer responsibilities and less maintenance, since many of those tasks are handled by the landlord.
Renters are primarily younger
Millennials and Gen Z combined make up 57 percent of all renters, meaning younger age groups account for more than half of the rental market. By generation, Millennials are the largest cohort at 33 percent, but Gen Z is not far behind at 23 percent. Gen Z is poised to become the largest renter group with their unprecedented growth. In the past three years, Gen Z renters jumped nine percent — the biggest change among all demographics.
| Percentage of Renter Households | |
| Gen Z (15-29) | 23% |
| Millennials (30-44) | 33% |
| Gen X (45-59) | 21% |
| Baby Boomers (60-78) | 18% |
| Silent/Older (79+) | 5% |
High homeownership costs are why younger adults enter the housing market as renters, but also why they remain renters. The Joint Center for Housing Studies' (JCHS) State of the Nation’s Housing says that to afford a median-priced home of $412,500, with a 30-year mortgage and 3.5 percent down payment, an annual income of $126,700 is needed. That income level is well above what many people earn early in their careers, making renting the realistic option.
Shifting lifestyle priorities have also caused a renter boom, as younger generations prioritize mobility, travel, and experiences over traditional ownership. A 2024 McKinsey report found that more than half of Gen Z said they splurge on experiences, versus only 29 percent of Baby Boomers.
Apartments.com’s renting forever survey reported similar findings as 34 percent of renters ages 18-29 said that renting allows them to afford the lifestyle they want. Younger generations are pursuing the housing choice that allows them to focus on their priority of lifestyle rather than the typical milestones.
But older generations still rent
While renters heavily lean younger, older generations remain a significant part of the market. Gen X, Baby Boomers, the Silent Generation, and older account for 43 percent of all renters. Although renters among these generations have dipped as more transition to homeownership or alternative housing, the 19 million in that age group provide a steady base of demand.
Gen Z Renters: A Fast-Growing Force in the Rental Market
Gen Z renters quickly became one of the main pillars of the renting population. From 2021 to 2024, Gen Z renters jumped nine percent to make up more than a fourth of all renters, the largest change out of all the demographics. As more Gen Z adults form households, a growing share are entering the rental market and staying there even as they age.
Homeownership seems out of reach for many Gen Z renters. According to a Freddie Mac survey, 34 percent said that owning a home at any point seems financially impossible. Another 39 percent said that saving for a down payment was a major hurdle, while insufficient credit history and unstable job situations came in at 27 percent. As a result, many remain renters longer instead of following the traditional path of becoming a homeowner.
However, renting is not just a contingency as many deliberately choose to rent to focus on their lifestyle. The same Freddie Mac survey found that 64 percent of Gen Z renters choose renting because it allows them to live closer to major cities and the activity they offer. They want urban neighborhoods where restaurants, amenities, and entertainment are within walking distance.
Flexibility is another huge draw, with 72 percent citing it as a reason for renting. It makes it easier to move when priorities, jobs, or life changes happen. Whether they’re responding to a life transition or exploring a new city, renting offers Gen Z a high level of mobility that homeownership lacks.
How landlords can market to Gen Z
As shown by the Freddie Mac survey, the lifestyle surrounding a rental matters just as much as affordability. Gen Z renters want a neighborhood that matches their routines, priorities, and goals. An Apartments.com Q2 2025 Gen Z renter survey reported that 64 percent of Gen Z renters want to be close to work, 17 percent higher than all renters. The next top three priority locations were grocery stores, restaurants, and green spaces, reinforcing how closely housing decisions are tied to lifestyle for Gen Z renters.
To attract Gen Z renters, your property marketing needs to sell more than square footage; it needs to sell the lifestyle, too. Your property description should show what daily life looks like in and around the property to help renters imagine themselves living there. Don’t forget to mention proximity to key locations to show how your rental meets Gen Z renters’ needs.
Your rental policies should reflect the flexibility that Gen Z renters look for. Offering a variety of lease term lengths can appeal to renters with different timelines and needs. That flexibility should extend to living arrangements as well. The survey by Apartments.com found that Gen Z renters are 10 percent more likely than other renters to live with housemates or roommates. Landlords that accommodate shared living situations and guarantors open up their rentals to this flexible generation.
Millennials: Redefining the First Home Timeline
Millennials make up the largest share of renter households at 33 percent. Due to entering the housing market during a time of economic difficulty, many started as renters and have stayed there. While the share of renter households has dropped by three percent since 2021 as some Millennials take the leap to homeownership, they still represent a large portion of the rental market.
The cost of buying a home has encouraged many Millennials to rent instead. In the State of the Nation’s Housing by JCHS, they report that the average monthly mortgage payment is $2,570. That doesn’t include the rising homeownership costs, with insurance premiums and property tax payments climbing.
Average homeowner insurance premiums rose 14 percent in 2024, increasing by $211 to a total of $1,761 per year. Property tax payments have jumped by $453, or 12 percent, from 2021 to 2023, reaching $4,380 annually. While some Millennials are able to achieve this, many cannot or choose not to. These costs put homeownership out of reach for many Millennials, and for those who can afford to buy, they still find renting the more practical option because of the expenses.
Still, many Millennials want to feel as though they are advancing their housing journey. Many are turning to single-family home rentals and similar properties that offer more space and a stronger sense of home. According to Apartments.com, 39 percent of Millennials said they expected to live in a single-family home, duplex, or townhouse for their next rental.
How landlords can market to Millennials
Millennials are looking for a place to settle down that is stable, comfortable, and livable long term. Reflect that desire in your property by staging your rental to give prospective tenants an idea of how warm and functional the space can feel. Neutral design choices make it easier for renters to imagine themselves in the home while still creating a cozy atmosphere.
The vibe of the community and neighborhood matters just as much as the rental’s atmosphere to Millennials. In the 2023 Community and Transportation Preferences Survey from the National Association of Realtors (NAR), 48 percent said that being within an easy walk of other places in a community was very important, while 53 percent said sidewalks and places to walk were very important.
The emphasis on community is reinforced by the 90 percent of Millennials who said they would spend more to live in a walkable neighborhood. Include descriptions of the neighborhood and walkability of the area in your property description to connect with Millennials’ priorities.
Since Millennials are choosing to rent longer, landlords have the opportunity to keep a good tenant around longer. The key is fostering a good relationship through open communication, quick responsiveness, and treating tenants like people, not just leases. By creating a positive rental experience, landlords can turn Millennials’ long-term renting trend into tenant retention.
Gen X: Split Between Ownership and Renting
Gen X accounts for about one-fifth of all renters, and their hosing patterns resemble Millennials’ choices. They too have experienced delayed life milestones that have kept them in the rental market longer. Some have transitioned to homeownership, which explains why the percentage of Gen X renter households dropped two percent from 2021 to 2024, from 23 to 21 percent.
Even so, many Gen X renters are looking to set down roots. Apartments.com says that 37 percent expect their next rental to be a single-family home, duplex, or townhouse for their next rental. This signals a clear preference for space and a long-term home.
How landlords can market to Gen X
Just as Millennials favor rentals that offer a spacious, private home atmosphere, so do Gen X renters. The NAR survey found that Gen X prefer larger homes with yards. When given the choice of an apartment with good walkability and a short commute versus a detached, single-family house that requires more driving, more than half of Gen X renters chose the single-family house. To appeal to this space-seeking generation, showcase the dimensions of your rental with high-quality photos, videos, and 3D tours, both the interior and exterior.
Gen X looks for rentals that can fit their lifestyle. Landlords need to be flexible to meet the non-negotiable needs of Gen X. A prime example is pet policies. An Apartments.com survey found that Gen X is the second most likely generation to live with a pet at 40 percent.
Baby Boomers: Renting by Choice, Not Necessity
While the majority of Baby Boomers (80 percent) are homeowners, the remaining 20 percent rent by choice, rather than necessity. Renting makes it easy to downsize while still finding a home with the features they want, all with less maintenance and fewer responsibilities. However, it still offers the privacy and space of homeownership that Baby Boomers value, especially if they rent a single-family home.
Downsizing is the biggest priority for Baby Boomers. In fact, they account for 53 percent of home sellers, according to the NAR’s 2025 Home Buyers and Sellers Generational Trends report. The type of rental that Baby Boomers expect to live in next also shows this focus on downsizing. A survey by Apartments.com found that 67 percent reported they expected to live in an apartment for their next residence, which is 11 percent higher than Millennials and Gen X.
How landlords can market to Baby Boomers
Highlight the features that make a property easier to live in and easier to maintain. That can include details like a single-level layout, wide doorways, and a low-maintenance outdoor space.
Focusing on these desirable features also helps your listing match Baby Boomer’s criteria. The NAR Community and Transportation Preferences survey found that Baby Boomers prefer single-family houses, but don’t want the upkeep that comes with a large yard. While they value walkable communities, they don’t mind having to drive if it means the privacy and comfort of a detached home. Capture this generation’s attention by showing how your property balances low-maintenance living with privacy and space.
Reach Renters Across Generations with Apartments.com Rental Manager
As renter preferences shift across generations, landlords need tools that make it easier to market strategically. Apartments.com Rental Manager helps landlords advertise listings, highlight the features renters value most, respond to inquiries, and manage the rental process more efficiently. When you understand what different generations want from a home, Rental Manager helps you turn those insights into a stronger listing and a better leasing experience.
Methodology
All renter and homeowner percentages and counts are from Apartments.com tabulations of U.S. Census Bureau PUMS data from 2024, the most recent data available.
The survey of 20,000 respondents was conducted by Apartments.com in Q2 2025. Of the total sample, 5,365 respondents were Gen Z, representing 27 percent of all survey respondents.
FAQs
What do Gen Z renters want?
Gen Z renters often want affordability, flexible lease options, roommate-friendly policies, and locations close to work, grocery stores, restaurants, and green spaces. They are also highly lifestyle-driven, so neighborhood appeal matters as much as the unit itself.
Why is Gen Z renting longer?
Gen Z is renting longer because many see homeownership as financially out of reach due to down payment challenges, limited credit history, and unstable job situations. Many also prefer renting because it lets them stay flexible and live near cities, work, restaurants, and entertainment.
Why are people choosing to rent instead of buying a home?
More Americans are renting long term because home prices, mortgage rates, down payments, property taxes, and insurance costs have made homeownership harder to afford. Renting also offers flexibility, convenience, and less maintenance, which appeals to many households across generations.
What percentage of the population rents?
According to U.S. Census Bureau data, 34 percent of households rent, while 66 percent own their home.
