Renters Stay Put Amid High Homeownership Costs – NMP Skip to main content

Renters Stay Put Amid High Homeownership Costs

Jan 02, 2025

As monthly mortgage payments have tripled, renters have remained in place longer and more frequently

A growing number of renters are putting home purchase plans on hold and renting for longer, according to a recent Redfin analysis and data from the U.S. Census Bureau’s 2023 survey which shows that 33.6% of renters have lived in their current home at least five years, up from 28.4% in the previous decade.

In particular, members of the baby boomer generation are the most stationary, with over a third (34.1%) renting the same home for 10 years or more, and 56% renting the same residence for at least five years. Gen Z, perhaps not surprisingly, had the shortest rental tenure, with more than half (52.4%) reporting they’d been in their homes less than a year. 

Across the country, cities that saw the greatest influx of pandemic renters also experienced greater rental movement in 2023. Denver, Colo., Austin, Texas, and Salt Lake City, Utah, saw 38%, 37.8%, and 36.9% of renters in the same home for less than 12 months, respectively. 

In cities with notoriously high home ownership costs—New York, N.Y., Los Angeles, Calif., and Riverside, Calif.—renters were far more likely to stay put. In New York, just 14.9% of renters had moved within the last twelve months. Los Angeles and Riverside saw only 16.7% and 18.9% movement, respectively. 

Consistently high interest rates, as well as a lack of affordable and available homes, has kept home ownership well out of reach for droves of potential buyers. Since early 2024, many renters have felt that home ownership is out of the question.

Sheharyar Bokhari, Senior Economist at Redfin, noted, “Monthly mortgage payments have nearly tripled over the past decade, preventing many renters from being able to buy a home… 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.”

With mortgage rates and home prices showing no apparent signs of relenting as the new year begins, odds are good that renters across the country will choose to maintain the status quo for the foreseeable future.

About the author
Kathryn Fitzpatrick is an associate editor at NMP.
Published
Jan 02, 2025
Home Contract Signings Hit Record October Low, Falling 17%

Realtor.com reports a sharp decline in purchase activity as higher rates erode borrowing power

Nov 04, 2026
MBA: Mortgage Payments Climb Despite Smaller Loan Amounts

September's $53 increase ended three months of payment relief, with affordability deteriorating in 39 states

Oct 30, 2026
Fannie, Freddie Credit-Loss Provisions Nearly Quadruple Despite Strong Profits

The mortgage giants recorded a combined $1.94 billion in third-quarter provisions, with higher projected rates extending credit exposure and signs of stress emerging among newer loans

Oct 30, 2026
Appraisal Fees Under Fire

Appraisers face stagnant pay and rising costs as AMCs defend their fees and new technology reshapes the industry

Oct 29, 2026
$11.6 Trillion In Home Equity Remains Rate-Locked, But Cracks Are Emerging

First American finds that locked-in accessible equity declined even as total equity reached a record $13.2 trillion

Oct 29, 2026
Nearly Half Of Foreclosures Involve Newer Loans As FHA Auctions Surge

ICE and Auction.com data reveal a growing concentration of recent mortgage vintages in foreclosure activity, with government-backed borrowers facing additional equity pressures

Oct 28, 2026