US Renter Population Increases in Q4

On Wednesday, Redfin reported that the number of renter households in America increased 0.8% year-over-year to 45.4 million in Q4, the slowest growth since 2023Q1. The number of homeowner households rose 0.8% to 86.9 million—a growth rate that’s changed little from recent quarters.

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

Redfin said the reason for the change is that 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.

According to Redfin, just over one-third (34.3%) of US households rent, while nearly two-thirds (65.7%) own—rates that have remained relatively steady over time.