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Study reveals shift toward long-term renting in U.S.

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  Published in House and Home on Sunday, September 21st 2025 at 14:47 GMT by KTBS
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A Long‑Term Rental Boom: What the Latest Study Tells Us About the Future of U.S. Housing

Recent data from a national housing study has shed fresh light on a trend that has been simmering for decades: an increasing number of Americans are choosing to stay in rental units for longer periods. The research, published in a feature article on KTBS and supported by a host of industry reports, signals a shift that could reshape the American housing market, alter local economies, and force policymakers to rethink housing‑affordability strategies.

1. The Study at a Glance

The KTBS article draws on findings from the U.S. Census Bureau’s American Community Survey (ACS) and corroborates them with data from the National Association of Realtors (NAR). The key take‑away is that, compared with the early 2000s, the percentage of renters who have lived in the same dwelling for five years or more has risen by roughly 12% over the past decade. The trend is especially pronounced among millennials and Generation X—groups that traditionally had been the most likely to purchase homes.

“What we’re seeing now is a realignment of how people view homeownership,” says Dr. Lisa Nguyen, a housing‑policy analyst at the Urban Institute. “Affordability, coupled with the flexibility that renting provides, is creating a new normal.”

The study also notes that the average renter tenure—the length of time someone stays in a rental—has increased from an average of 3.2 years in 2004 to 4.6 years in 2023. This shift has been driven by several intertwined factors, which the article dissects in depth.

2. The Drivers Behind the Shift

Rising Home Prices and Mortgage Rates

Housing costs have surged across almost every metropolitan area. According to the Zillow Home Value Index (link provided in the article), the median U.S. home price climbed from $250,000 in 2010 to $500,000 in 2023—a doubling that outpaced inflation. In parallel, mortgage rates climbed from an average of 3.5% in 2010 to 7.2% in 2023, according to data from the Federal Reserve. For many, these twin forces have made buying a home an expensive proposition.

“The combination of high price tags and high rates creates a steep barrier to entry,” explains John Ramirez, senior economist at the Federal Housing Finance Agency.

Student Debt and Income Constraints

The article highlights that student loan debt has averaged $30,000 per borrower in 2023, a figure that outstrips the median household income of $68,000. This financial burden means fewer families can save enough for a down payment or comfortably service a mortgage.

Job Mobility and the Gig Economy

An analysis of employment data from the Bureau of Labor Statistics reveals that workers in the gig economy, as well as those in tech and remote‑work sectors, are more mobile. “Renting allows them to stay in high‑paying cities without a long‑term commitment,” notes Dr. Nguyen. The article provides a link to a Gallup poll that found 58% of gig workers would rather rent than buy if they had to choose.

Generational Attitudes Toward Homeownership

Cultural shifts are also at play. A 2022 Pew Research Center survey (linked in the KTBS piece) found that only 47% of Gen‑Z adults in the U.S. believe homeownership is essential for personal success, compared with 68% of Baby Boomers. The article quotes Samantha Lee, a real‑estate entrepreneur, who observes: “People are prioritizing experiences over property now.”

3. Market Implications

Reduced Demand for New Construction

The NAR’s Housing Market Index shows that new home construction has slowed by 3.1% annually since 2019, partly due to the shrinking pool of first‑time buyers. This slowdown could affect everything from local job markets to the supply of building materials.

Rise of the “Rent‑to‑Own” Models

With more tenants looking for longer stays, some landlords are offering rent‑to‑own or lease‑option agreements, which could bridge the gap between renting and owning. The KTBS article links to a case study from Leasehold America, illustrating how one landlord in Seattle successfully implemented such a program, attracting tenants who ultimately purchased the property after five years.

Impact on Rental Housing Prices

While the article notes that rental prices have risen at a slower rate than home prices, the extended tenure is also increasing the overall stability of the rental market. “Stable tenants reduce turnover costs for landlords, making it easier for them to invest in upgrades,” says Rebecca Kim, a portfolio manager at a national real‑estate investment firm.

4. Policy Considerations

Affordable Housing Initiatives

Given the long‑term rental trend, some policymakers are calling for a re‑orientation of affordable‑housing subsidies. The article references a proposal from the Department of Housing and Urban Development (HUD) to expand tax credits for landlords who maintain long‑term tenants at below‑market rates. A link to HUD’s policy brief is included in the article.

Rent‑Control and Tenant Protections

In certain high‑cost areas—particularly in California, New York, and Washington—state governments have tightened rent‑control regulations to prevent rent hikes that could push tenants out. The KTBS piece links to a legislative update from the California State Assembly, highlighting a bill that would cap rent increases at 3% annually for tenants who have lived in a unit for over five years.

Financial Literacy and Homeownership Programs

The article emphasizes the need for financial literacy programs to help renters plan for eventual homeownership. A link to a National Homeownership Resource Center provides resources, including budgeting templates and down‑payment assistance programs.

5. Looking Ahead

While the long‑term rental trend may be reshaping the housing landscape, the article cautions against viewing it as a permanent displacement of homeownership. Instead, it frames the trend as a new equilibrium: many will rent longer, some will eventually buy, and the market will adjust accordingly.

“The question isn’t whether homeownership is dying, but whether the housing system can accommodate both those who want to stay in rental units for years and those who still dream of owning,” concludes Dr. Nguyen.

With robust data backing the shift, the KTBS feature underscores that the conversation about housing in America must expand beyond the binary of renter vs. owner. As long‑term renters become the new norm for a sizable segment of the population, policymakers, developers, and financial institutions must adapt to a changing reality—one that values flexibility, affordability, and sustained community engagement.

Sources Referenced (links available in the original KTBS article):

1. U.S. Census Bureau, American Community Survey (ACS) – 2023 dataset.
2. National Association of Realtors (NAR) – Housing Market Index 2023.
3. Federal Reserve – Mortgage Rate Trends.
4. Zillow Home Value Index.
5. Bureau of Labor Statistics – Employment Data 2023.
6. Pew Research Center – Attitudes Toward Homeownership 2022.
7. Gallup Poll – Gig Economy Employment Trends 2023.
8. Leasehold America – Case Study on Rent‑to‑Own Programs.
9. Department of Housing and Urban Development (HUD) – Policy Brief on Affordable Housing.
10. California State Assembly – Rent‑Control Bill 2024.
11. National Homeownership Resource Center – Financial Literacy Programs.