A new survey from Redfin (NASDAQ:RDFN) found one in six renters (16.6%) stayed in their home for 10 years or more in 2022, up from 13.9% one decade earlier.
Furthermore, one in six (16.4%) renters lived in their home for five to nine years in 2022, up from 14% a decade earlier. However, the majority of share of renters (41.8%) remained for one to four years while one-quarter (25.2%) stayed in their home for 12 months or less before moving in 2022 – one decade earlier, the latter share was 32.2%.
Redfin attributed the statistics to elevate home sale prices and mortgage rates while the increase in rental prices – up by more than 20% since 2019 – has discouraged people from moving from one rental to another.
“The uptick in tenure is beneficial for renters and their landlords,” said Redfin Senior Economist Sheharyar Bokhari. “While the fact that people are staying longer in their rentals may mean they can’t afford to buy a home in today’s market, staying put also means they’re saving some money that could eventually go toward a down payment if they do have a goal of homeownership. Staying in the same home means they’re likely to face smaller rent increases, and they’re saving money on moving costs and application fees. Landlords typically prefer long-term tenants because they don’t have to spend money on cleaning and marketing vacant units.”
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