Redfin Report: America’s Renter Population Grew 1% in the Fourth Quarter

New York and Los Angeles are the only metro areas where the majority of households rent. Renting is least common in Cape Coral, FL and Dayton, OH.

SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) —The number of renter households in America increased 0.8% year over year to 45.4 million in the fourth quarter—the slowest growth since the first quarter of 2023, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The number of homeowner households rose 0.8% to 86.9 million—a growth rate that’s little changed from recent quarters.

That marks the first time in over a year that the number of renter and homeowner households are increasing at the same rate. Prior to this, the number of renter households had been growing faster for four-straight quarters.

Home prices are more than 40% above pre-pandemic levels, while rent prices are roughly 20% above pre-pandemic levels. This is one reason why the rentership rate has recently been rising faster than the homeownership rate. The rental market has seen an influx of supply over the last few years, helping to keep rent growth at bay.

“Owning a home used to be the crux of the American dream, and while many still consider it a rite of passage, a lot of people are opting to rent for longer because they can’t afford to buy a place of their own,” said Redfin Chief Economist Daryl Fairweather. “Even people who can afford to buy homes are choosing leases over mortgages, often because they want a flexible, low-maintenance lifestyle, or want to invest their money somewhere other than real estate. Affluent renters have become more common in nearly three-quarters of major metros since 2019.”

There Are Only Two Metros Where Renters Are the Majority

Just over one-third (34.3%) of U.S. households rent, while nearly two-thirds (65.7%) own—rates that have remained pretty steady over time. But the rentership rate is much higher in pricey coastal metros.

In New York, 51.9% of households rented in the fourth quarter—the highest share among the 75 largest U.S. metropolitan areas. Next came Los Angeles (51.5%), Albany, NY (48.4%), Fresno, CA (48.3%) and San Francisco (46.2%).

Rentership rates tend to be highest in places where it’s expensive to buy a home. All but two of the aforementioned metros (Fresno and Albany—the New York state capitol) have median home sale prices above the national level. A recent Redfin report found that pricey coastal markets have the highest share of wealthy renters.

Renting is least common in places with relatively low home sale prices. In Cape Coral, FL, 15.5% of households rent—the lowest share among the metros Redfin analyzed. It’s followed by Dayton, OH (21.2%), Toledo, OH (21.9%), Columbia, SC (22%) and North Port, FL (22.3%).

This is based on a Redfin analysis of U.S. Census Bureau data going back to 1994. A renter household is defined as one where the head of the household reports to the Census that they are renting out the property, while a homeowner household is one where the head of household reports they own the property. The number of homeowner and renter households have been hovering near record highs because the U.S. population is at a record high.

To view the full report, including charts and metro-level data, please visit: https://www.redfin.com/news/rentership-rate-q4-2024

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 $1.8 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 [e-mail]. To view Redfin's press center, click here.