Why More Americans Are Choosing to Rent in 2025

Explore rising rent trends, key real estate investment markets, and how you can profit from the booming Single-Family Rental (SFR) market.

The Shift Toward Renting: A Market Revolution

The American housing market is experiencing a profound shift. As of the fourth quarter of 2024, approximately 30.8% of housing units in the United States are renter-occupied, totaling around 45 million rental households (U.S. Census Bureau). This marks a significant rise from 2010, when there were 37 million rental households (Statista). Over the same period, the total number of housing units has grown from 131 million to 145 million, showing that while homeownership remains a goal for many, renting has become a long-term reality for millions more.

This trend presents an incredible investment opportunity, particularly in the booming Single-Family Rental (SFR) market. Rising home prices, economic shifts, and changing lifestyle preferences have all contributed to this movement, positioning rental properties as one of the most promising assets for long-term wealth generation.

Why Are More People Renting?

One of the most critical drivers behind this trend is affordability. Mortgage rates have remained high, averaging 6.3% in 2025 (New York Post), making homeownership significantly more expensive. At the same time, home prices continue to climb, with a 3.7% increase expected in 2025, following a 4% rise in 2024 (New York Post). These rising costs, coupled with inflation and lingering student loan debt, have made it harder for Americans to save for down payments and manage monthly mortgage obligations.

Beyond affordability, many are choosing to rent due to lifestyle preferences. Renting provides unparalleled flexibility, allowing individuals to move for career opportunities, be closer to urban centers, or avoid the burdens of home maintenance. Without the worries of property taxes, repairs, or unexpected housing market downturns, renting has become an attractive option, not just for those who cannot afford to buy but also for those who prefer convenience and freedom.

Institutional investors have also played a pivotal role in shaping the rental market. Companies like Blackstone and Invitation Homes have aggressively expanded their portfolios, purchasing thousands of single-family homes and converting them into rental properties (Wall Street Journal). This trend has given rise to build-to-rent communities, entire neighborhoods designed specifically for renters. With 31% of all rented homes now being single-family properties (Baselane), the demand for suburban rentals is at an all-time high, presenting investors with a lucrative opportunity.

At a Glance: Why Renting is on the rise

  • High mortgage rates make buying a home too expensive for many.
  • Home prices are rising, making down payments harder to afford.
  • Renting offers flexibility, allowing people to relocate easily.
  • No maintenance costs—homeowners bear repair expenses, renters don’t.
  • Big investors are buying more properties, making homeownership more competitive.

The Rising Cost of Rent: A Decade of Growth

Rental prices have surged over the past decade, making real estate investment even more attractive. In 2013, the average U.S. rent was $1,062. By 2023, it had skyrocketed to $1,448, reflecting a 36.4% increase in just ten years (iProperty Management). Some high-demand cities have experienced even steeper growth, with rental prices climbing by more than 50% in metropolitan areas with limited housing supply.

Rent Price Increase (2013-2023) in Major U.S. Cities

City Rent in 2013 ($) Rent in 2023 ($) Increase (%)
New York 2500 3700 48%
Los Angeles 1800 2800 56%
Chicago 1200 1800 50%
Houston 1000 1600 60%
Phoenix 900 1700 89%
Miami 1500 2600 73%

Rent price increase over the last 10 years

With demand consistently outpacing supply, rental prices are expected to continue their steady rise. This makes investing in rental properties, particularly in single-family homes, an increasingly reliable strategy for wealth building. As rents increase and property values appreciate, investors can enjoy both immediate cash flow and long-term equity growth. To take advantage of this opportunity now, sign up today with Realbricks and gain access to SFR in highly vetted areas.

The Best Markets for Single-Family Rentals in 2025

The single-family rental market is thriving across various regions, but some cities present particularly strong investment opportunities. Chicago’s suburbs have emerged as one of the most competitive rental markets in early 2025, indicating high demand and low vacancy rates (New York Post). Richmond, VA, Omaha NE, and Raleigh, NC have seen strong appreciation in rental property values, making them attractive for long-term investors (HousingWire). Phoenix, AZ, and Atlanta, GA continue to experience rapid population growth, fueling rental demand and presenting excellent opportunities for those looking to capitalize on the market.

How You Can Profit from This Trend with Realbricks

  • Low-cost entry—start investing with as little as $100.
  • Earn passive income without managing tenants or repairs.
  • Own pieces of multiple rental properties instead of just one.
  • Track earnings & property values easily through the platform.
  • Invest in booming rental markets like Omaha NE.

The Future is Renting – Are You Ready to Invest?

The rental market is booming, and demand for high-quality rental homes continues to rise. With millions more renters today than a decade ago and rental prices steadily increasing, single-family rentals have become one of the best real estate investment opportunities available. Institutional investors have already recognized the potential in this space, and now, through fractional ownership, individual investors can take advantage of the same wealth-building strategies.

Don’t miss out on this trend. Start your real estate investment journey today with Realbricks and take advantage of the rental boom before prices climb even higher!

Ready to start investing? Sign up with Realbricks today.

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Disclaimer: Investing in real estate involves risks, including the potential loss of capital. This content is for informational purposes only and is not intended as investment advice. Investors should perform their own research and consult with financial professionals before making investment decisions.