Key statistics + insights
- In 2024, the monthly cost of renting across all 50 of the largest metro statistical areas is 37% cheaper than buying a typical home. (USA Today)
- 44.1 million American households are renters. (National Multifamily Housing Council)
- In the year 2024, 34% of Americans rented their homes. (DoorLoop)
- Nationwide, renters spend around $485 billion in rent every year. (PolicyAdvice)
- A 2024 study from Harvard reports that 22.4 million U.S. households spend more than 30 percent of their income in rent, with 12.1 million spending more than 50 percent. (NY Times)
- 48,248 (0.11%) of rental homes are rent-controlled. (iPropertyManagement)
- The average renters insurance policy costs $19 a month. (The Zebra)
- Black and Hispanic households are twice as likely to rent compared to white households. (Pew Research)
- The median U.S. rent accounts for 29.1% of the average American household income. (Zillow)
Should you rent or buy a home?
In many situations, owning a home is considered a better option than renting. A home is a financial asset that may appreciate over time, and a mortgage may resemble a long-term investment. However, as housing prices rise, many Americans are turning to renting as a more accessible option. Landlords in some areas are seeing an influx in applications to rent properties, both commercial and residential.
Combining data from housing resources like the National Multifamily Housing Council and the Insurance Information Institute, along with private housing data from Zillow and Apartment List, a more complete picture of the evolution of renting in America begins to take shape. Use these data points and The Zebra’s proprietary information to decide for yourself if you should rent or buy your next home.
Table of contents
- Renting statistics
- Renting statistics through the years
- Rent control statistics
- Commercial rent statistics
- Homeownership vs renting statistics
- Affordable housing statistics
- Millennial renting statistics
- Renters insurance: what you need to know
- FAQs about renting
Renting statistics
In April of 2021, The Zebra surveyed 1500 Americans for insight into renting patterns and home buying data. An overview of the statistics reveals that most Americans purchase their homes young, pay a reasonable monthly rent, and have some combination of bundled insurance products to protect their assets.
- 57.9% of respondents own their homes outright.
- 32.8% of respondents purchased their homes between the ages of 24 and 34.
- The majority of respondents (18%) of respondents pay between $500 and $1000 for their monthly rent or mortgage.
- Over half of respondents have either auto, home, life, or medical insurance.
- 22.4% of respondents have an exceptional credit score, while other studies show that most renters only have a fair credit score.
- In our survey, 7.7% of respondents had a fair (580-669) credit score.
- Most people (9.9%) reported their biggest obstacle to owning a house would be the affordability of the area.
Renting statistics through the years
For more information on renters statistics, consider the full reports from their sources: the Insurance Information Institute, Pew Research, NMHC, Apartment List, Aparment Guide, the Department of Numbers, Statista, iPropertyManagement, and MySmartMove.com.
- The national average rent for an apartment was $1,713 in 2024.
- According to Apartment Guide in July 2024, New York City, NY has the highest rent in the nation with an average of $4,300 for a one-bedroom.
- The average tenant has a credit score of around 650. This means that tenants are less credit-worthy.
- In 2022, 70% of rental properties were owned by individual investors and not corporations.
- Less than one-third (28%) of tenant applicants have a criminal record.
- On average, landlords screen two applicants per property.
- There are about 2,654 new renters every day.
- 91 of the 100 largest U.S. cities have seen rent increases over the last year.
- 49% of American renters are under 30.
- 77% of the people in the US prefer to rent instead of buying a home.
- Over the last decade (from 2013 to 2023), rent inflation has outpaced currency inflation by 40.7%.
- There are more people renting now than at any point since 1965
- 127 working hours is the weekly requirement for minimum wage earners to afford the average apartment.
- Only 37% of renters have renter’s insurance.
- The average monthly premium for renters insurance is about $19 a month.
- 17% of renters live in a duplex.
Rent control statistics
The following statistics are taken from these sources: the National Bureau of Economic Research, the NMHC, and IGM Chicago Forum.
- 81% of economists disagree that rent control policies have had a positive impact over the past three decades on the amount and quality of broadly affordable rental housing
- There are 182 cities and municipalities with rent control or rent stabilization laws, mostly in California.
- A total of 37 U.S. states have prohibited rent control outright.
- Rent control systems have historically led to housing shortages and slums because there is little financial incentive to build new housing, let alone maintain existing housing.
- Moderate rent stabilization laws can encourage residential stability and mixed-income communities and limit gentrification and displacement.
Commercial rent statistics
Please refer to the National Association of Realtors, Statista, and IBISWorld for additional data concerning the data below:
- The commercial real estate market market in the United States is anticipated to reach $25.28 trillion by the end of the year 2024.
- Commercial real estate prices rose at a 1.4% annual rate from September 2019 to 2020.
- 54% of respondents reported an increase in missed, late, or partial payments for industrial, retail, and office spaces.
- Based on annual rent, 5th Avenue in New York City has the most expensive retail rates in the world.
- The value of commercial construction amounted to $8.12 billion in the first half of 2019
- Commercial construction in the United States amounts to about 6.2 billion dollars only in the first half of 2018
- Leasing agencies in the U.S. bring in more than $216 billion every year.
Homeownership vs renting statistics
The following data is taken from leading housing authority sources, including The United States Census Bureau, the National Association of Realtors, World Property Journal, and The Mortgage Reports.
- 65.8% of Americans own their homes outright.
- The homeownership rate was 3.8% points higher than the rate in the second quarter of 2019 and 2.6% points higher than the rate in the first quarter of 2020.
- Renter households earn a median of $41,515 in 2017 while homeowners earn a median of $77,523.
- Homeownership in the U.S. has been on the decline since 2005
- The Black homeownership rate has seen an uptick in recent years to 44.1% in 2024.
- 95% of homeowners had Homeowners Insurance.
- Owning a median-priced three-bedroom home in the United States is more affordable than renting one.
Affordable housing rent statistics
These and additional statistics cited here are from national sources such as the National Low Income Housing Coalition, the Monroe Group, Habitat for Humanity, and the Center on Budget and Policy Priorities.
- For every 100 very low-income households, only 36 affordable rentals are available.
- African-Americans are significantly more likely to be low-income renters.
- The United States is short 7 million homes based on current needs.
- In 2022, 42 million households were considered “housing cost-burdened,” which means they spent 30% or more of their income on rent.
- In 2022, 10.2 million people in 5.2 million American households had federal rental assistance to afford modest housing.
- In 2022, there were about 6 million households with children living in assisted housing in the United States.
- There isn't a single county in the United States that can fill 100 percent of its low-income population's needs for safe and affordable housing.
- To afford a basic two-bedroom apartment in the United States, renters need to earn an average of $20.30 per hour. Remember that minimum wage currently is just $7.25 per hour.
Millennial renting statistics
Additional data on the statistics below can be found at ApartmentList, MyMove, Valuepenguin, and Statista.
- 80% of millennials would like to eventually own a home
- 38.5% of people who find themselves 35 and younger are homeowners.
- 12.3% of millennial renters plan to “always rent.”
- 25% of millennial renters will be able to afford a 10% down payment on a median-priced home in the next 5 years. If student debt obligations were dismissed, this would improve to 38% nationally, and more than 50% in some metropolitan areas.
- 88% of millennials believe homeownership is important for personal success
- Nearly three-quarters of millennials rent.
- Millennial homeownership rates have fallen 20% in the past 10 years.
- Down payment is, for many, the largest expense and biggest financial obstacle to homeownership
- Student debt remains another major barrier to homeownership.
How much is renters insurance?
After averaging rates from top companies across the nation, The Zebra found that the average annual rate for a renters insurance policy is $19 per month. Unlike homeowners insurance, renters insurance does not cover your dwelling — only everything inside the unit you are renting. Most renters insurance policies will explicitly state what is covered and what is not, so be sure to check your own before any accidents.
As nationwide rent prices continue to fluctuate, renters insurance can become another financial burden. Take a look at our chart to find the average premium in your state.
Renters insurance premiums by state
Below is a state-by-state breakdown of the cost of renters insurance.
If you're in the market for renters insurance, feel free to give us a call! Our friendly in-house agents will compare rates from multiple insurers and find you the best policy at the best price.
Prefer an online option? Get a quote from our friends at Lemonade! While not a comparison platform, they're well-known for their easy-to-use app, streamlined claims process, and personalized, flexible coverage.
Learn more about Lemonade here.
Please note Lemonade is currently only available in 29 states (AZ, AR, CA, CO, CT, DC, FL, GA, IL, IN, IA, MD, MA, MI, MO, NV, NJ, NM, NY, OH, OK, OR, PA, RI, TN, TX, VA, WA, WI).
FAQs about renters
Q: What percentage of Americans rent?
In the latter half of 2020, 89.1% of Americans rented their homes, according to iPropertyManagement.
Q: Do you need to make three times the monthly rent to be able to rent an apartment?
While there is no law enforcing the “3 x rent” rule, the basis of this rule comes from section 8 of the Housing Act of 1937 that states renters must put at least 30% of their income towards their income and therefore, they should earn at least three times as much as the rent.
Q: How many renters are there?
According to the US Department of Housing and Urban Development, in 2019 there were 43.6 million rent-based households in America.
Q: How much profit should you make from a rental property?
According to investors, if you make at least a $100 profit on a rental property, then it is worth the time and effort to sink money into the property.
Stay in touch and subscribe!
Get advice, insights and tips from our newsletter.