Keeping your rental property leased starts with identifying local renter demographics. According to the National Multifamily Housing Council, approximately 141 million households are projected to exist in the United States by 2030. To capture this demand, landlords must understand what renters in their area want and tailor offerings accordingly.
Key Takeaways:
- Young adults remain the largest share of renters, but demand spans all age groups.
- Rental demand continues to grow, especially for single-family homes in suburban and Sun Belt markets.
- Understanding local renter preferences helps reduce vacancies and maximize returns.
- Market research and expert guidance are vital for success.
- Flexibility and amenities attract high-quality tenants.
Who Rents? Key Demographics Across Property Types
Young adults remain the largest group of renters, but the rental population is more diverse than ever. Nationwide, 78% of households under 25 years of age rent, according to Harvard’s Joint Center for Housing Studies. This segment is driven by a desire for flexibility, career mobility, and affordable living options. Many young renters seek locations near urban job centers or universities, while others prioritize affordable suburban communities with good transit.
Rental demand also spans older age groups. Two-thirds of individuals aged 25 to 30 continue to rent, often as they build careers or start families. Among those over 40, a significant portion rents by choice or necessity, including empty nesters, divorcees, and those delaying homeownership due to affordability issues or lifestyle preferences. For adults over 55, renting offers freedom from maintenance, lower financial risk, and flexibility to relocate or downsize as needs change.
Additionally, shifting economic factors and lifestyle trends have broadened the renter base. Remote work, rising home prices, and changing family structures lead more people of all ages to rent longer than previous generations. Understanding this wide range of renter profiles allows landlords and investors to tailor amenities, marketing, and lease structures to attract and retain tenants from various demographic groups.
Who Rents Single-Family Homes?
According to a Redfin report, 33.1 percent of renter-occupied housing units in the U.S. are in large multifamily buildings, the highest level since 2011, while single-family homes now account for just 31 percent of rentals, their lowest share on record. Local trends matter: suburban families, pet owners, and those seeking outdoor space often prefer single-family rentals.
Understanding the most in-demand property types and renter preferences in your area is essential. Top reasons renters choose single-family homes include:
- More living space
- Private yards or outdoor areas
- Pet-friendly amenities
- Family-friendly neighborhoods
Yet, demand can also come from retirees or young professionals, depending on location. Know your market to reduce vacancies and attract quality tenants.
Learning about your local renter demographic can be challenging, especially in fast-growing or remote markets. Partnering with a local rental market expert helps you target the right tenants, set competitive rents, and market your property effectively. Professional advice can make the difference in maximizing your investment returns.
Frequently Asked Questions
What age group rents the most homes?
Young adults under 25 make up the largest share of renters, 78% rent rather than own. However, renters now come from all age groups. Many people aged 25–30, and a growing number over 40 and 55, also rent for flexibility, convenience, or to avoid maintenance. Today’s rental market is truly multi-generational.
How has the popularity of single-family homes and apartments changed in recent years?
While preferences vary by region, recent data shows that large multifamily apartment buildings now make up the highest share of rentals nationwide, while single-family homes account for a shrinking portion. However, demand for single-family rentals remains strong in suburban areas and among families or pet owners.
How can landlords attract quality tenants?
To attract quality tenants, offer pet-friendly policies, in-unit laundry, high-speed internet, and flexible lease terms. Good maintenance, clear communication, and secure digital payments also help. Properties that provide convenience and meet modern renters’ needs are more likely to attract and keep reliable tenants.
Should I work with a property management company?
Professional managers offer valuable local expertise, market analysis, and tenant screening to help you maximize returns and minimize vacancies.
Knowing your local renter demographics is important, but it can be difficult, especially in remote or developing areas. Consider hiring a local rental market expert in Northwest Arkansas, the River Valley, and Wichita, KS, to help you plan and promote your property. Real Property Management First Choice has the expertise to identify your target market and to find qualified tenants for your rental property. Contact us today for assistance.
Originally published June 30, 2023
This content is provided for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. Readers should consult with licensed professionals regarding their specific circumstances.
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