Why More Americans Are Renting Than Ever: A Surge in U.S. Rentership

Rising Home Prices, High Mortgage Rates Push More Americans Toward Renting

For the first time in nearly a decade, the dream of homeownership in the U.S. is taking a backseat as more Americans turn to renting. According to a recent analysis by real estate brokerage Redfin, the number of households that own their homes has had a slight drop, while the number of those renting has surged notably.

Shift in Homeownership Trends

The report reveals a marginal decline of 0.1% in homeowner households, now numbering 86.2 million. Meanwhile, renter households leapt by 2.6% to approximately 46.4 million, highlighting a notable shift. In bustling Los Angeles alone, renters now outnumber homeowners, reflecting the broader national trend.

Economic and Social Factors at Play

What fuels this shift? It’s a cocktail of economic challenges – from the sharp rise in home prices to soaring mortgage rates. The median U.S. home price rose to $443,867 in July 2025, setting a new record. Mortgage rates have more than doubled since pandemic lows, averaging 6.56%. Factors like delayed family formation also contribute: Americans are waiting longer to get married and start families, pushing them to rent rather than buy early on.

The Steady Homeownership Rate

While homeownership is experiencing challenges, the nation’s overall rate remains relatively stable. It only dipped slightly from 65.6% to 65%, with rentership inching up from 34.4% to 35% – a small yet significant shift.

Looking to the Future

Hope isn’t lost for potential buyers, though. Redfin notes a recent downturn in mortgage rates from their peaks earlier this year, which could lure some would-be buyers back into the market. According to The Pride LA, the end of low mortgage rates didn’t mean the end of the housing market’s appeal. The story continues to evolve, and potential homeowners may find their chance yet.

With changes in demographics and economic conditions, America is experiencing a rental resurgence that could redefine the concept of home for many.