Number of US Renter Households Continues to Increase in Q3

On Tuesday, Redfin reported that according to its latest analysis, the number of renter households in Q3 rose 2.7% year-over-year to a record 45.6 million.

That rate of growth is three times faster than the 0.9% increase in homeowner households, which now total a record 86.9 million, according to Redfin. The 2.7% increase—representing 1.18 million additional renter households—was the second fastest pace since 2015, only trailing Q1’s 2.8% rate.

Renter households have formed faster than homeowner households for the past four quarters as the cost of buying a home rose faster than the cost of renting. The median asking rent was up 0.6% year-over-year in September, but rents have remained largely flat for the past two years—becoming more affordable as wages grew at around 4%. In contrast, home prices climbed 6% year-over-year in September and have grown more than 10% in the past two years.

Highlighting the affordability barriers that exist for prospective homeowners, just 2.5% of US homes changed hands in the first eight months of 2024—the lowest rate in decades.

Adding background and analysis to the report, Redfin Senior Economist Sheharyar Bokhari said:

“Affordable housing has been at the forefront of this election cycle because so many people are struggling to see how they will ever become homeowners—especially those from younger generations. With home prices at record highs and mortgage rates remaining elevated, renting is increasingly the only viable choice for many young people and families. Building more homes will help address that, but we also have to recognize that Gen Z and future generations may not view homeownership as a life goal and the rentership rate may continue to rise for years to come.”