The US was home to 45.4 million renter households during the fourth quarter of 2024, a 0.8% uptick from one year ago. According to a data report from Redfin (NASDAQ: RDFN), this is the slowest growth since the first quarter of 2023.
Also during the fourth quarter, the number of homeowner households rose 0.8% to 86.9 million. This marks the first time in over a year that the number of renter and homeowner households are increasing at the same rate – previously, the share of renter households grew faster for four-straight quarters.
Redfin also determined that home prices are more than 40% above pre-pandemic levels and rent prices are roughly 20% above pre-pandemic levels. Just over one-third (34.3%) of households are renters, compared to nearly two-thirds (65.7%) of homeownership households. The share of renters is greater in expensive coastal metros – the top five renter household markets in the fourth quarter were New York City (51.9% of households), Los Angeles (51.5%), Albany, New York (48.4%), Fresno, California (48.3%), and San Francisco (46.2%).
“Owning a home used to be the crux of the American dream, and while many still consider it a rite of passage, a lot of people are opting to rent for longer because they can’t afford to buy a place of their own,” said Redfin Chief Economist Daryl Fairweather. “Even people who can afford to buy homes are choosing leases over mortgages, often because they want a flexible, low-maintenance lifestyle, or want to invest their money somewhere other than real estate. Affluent renters have become more common in nearly three-quarters of major metros since 2019.”
