The rental market faced many ups and downs this last year during the pandemic. With homeownership costs skyrocketing, many people are turning to rental properties as a better option.
According to the U.S. Census Housing Data, more U.S. households are renting than at any point in the last 50 years. Looking at 2021 renting statistics, we can see how the renter demographic and rental space has changed over time. We broke down the facts and figures to bring you the most accurate renting statistics from the last year.
Renting statistics
The demand for apartments has increased significantly. More and more individuals are seeing a large percentage of their salary going towards rent.
- Renters in the United States occupied 44.1 million housing units. (NMHC)
- 109 million Americans live in rental housing. (NMHC)
- 37% of renters live in apartments. (NMHC)
- 41% of renters in the United States live in single-family homes. (Pew Research Center)
- On average, renters spend 37% of income on rent. (Business Insider)
- Between 2020 and 2021, the average monthly rent in the U.S. saw a 10% increase. (Statista)
- 34.2% of all households rent in the United States. (U.S. Census)
- There are about 2,654 new renters every day. (Rental Protection Agency)
- Only 1 in 20 renters lives in the same apartment for more than 20 years. (U.S. Census)
Business Insider recently reported that only 13% of millennial renters across the US will be able to afford a traditional 20% down payment within the next five years. This could contribute to a continued rise in renting popularity.
Where and why are renters moving
Property management software company, Entrata, released a survey that gives a unique view into the rental market during the pandemic. Some of their key findings are below.
- 16% of renters moved because of the pandemic. (Entrata)
- 27% of individuals moved in the past year because of the cost of rent. (Entrata)
- 22% of American renters moved to a larger apartment with more space in the last year. (Entrata)
- 14% of people from Gen Z reported that they moved back in with their parents this last year. (Entrata)
- 54% of renters who moved in the last year say they experienced moving difficulties due to COVID-19. (Entrata)
Renters moved during the pandemic because of several factors. This included work-from-home options, price changes in units, and having the ability to move back in with their families.
Rental statistics by state
Rental home prices and age ranges vary drastically depending on where someone lives in the United States. The U.S. Census releases information on rental statistics by the state each year.
- The average U.S. state has 864,274 renting households. (U.S. Census)
- Hawaii has the highest median gross rent of $1,654. (U.S. Census)
- West Virginia has the lowest median gross rent of $727. (U.S. Census)
- North Dakota’s renters are the youngest with 48.5% of renters under 35 years old. (U.S. Census)
- Maine has the highest rate of renters 65 years or older. (U.S. Census)
- California has the highest number of rental units. (U.S. Census)
The average rent in the most expensive states is almost double average rent in the least expensive states.
Renter demographics
There are vast differences in renters depending on age, race and economic status. The renting population tends to be younger and lower-income compared to the home-owning population.
- 64.1% of renters are White. (Harvard)
- 19.7% of renters are Hispanic or Latino. (Harvard)
- 20.2% of renters are Black or African American. (Harvard)
- 5.4 million apartment households are single women. (NMHC)
- 10.8% of households have school-age children. (NMHC)
- 28.3% of renters have a bachelor’s degree or higher. (U.S. Census)
- 13.6% of renters never graduated high school. (U.S. Census)
- 9% of renters in the United States were 65 years or older. (U.S. Census)
- 49% of renters were under 30 years of age. (U.S. Census)
The totals will not all add up to 100% due to overlapping ethnic and racial demographic parameters.
Cost of renting
This past year brought about many shifts in the rental space, with many states showing declines in rent. That trend is projected to shift as people that fled big cities are starting the process of moving back in.
- The average monthly cost of a two-bedroom apartment’s rent in the U.S. is $1,938. (Apartment Guide)
- The median household income among renters is $42,479. (U.S. Census)
- 16.5% of apartment households have an income greater than $75,000. (U.S. Census)
- 41% of rental households have an annual income of $35,000 or below. (U.S. Census)
- 39% of renters are renting because of an inability to afford a down payment on a home. (Entrata)
- 33% of renters aren’t buying a home because they say homeownership is too expensive. (Entrata)
While there are many advantages to renting, finding a suitable rental is getting more challenging as more people transition to apartment living.
Rental industry
Employees in the rental industry contribute to everything from managing property, ensuring safety and maintaining amenities.
- One investment trust owns over 100,000 apartments in the United States. (Statista)
- The residential rental industry employs 834,000 individuals. (U.S. Bureau of Labor)
- Businesses or partnerships own over 25.8 million rental units. (U.S. Census)
- Landlords have an average income of $97,000 a year. (U.S. Census)
- The average rental industry employee’s annual income is $47,965. (U.S. Bureau of Labor)
- Property managers make an average income of $64,113. (U.S. Census)
The IRS reported that over 10 million Americans earn money from a rental income every year, and that is projected to rise as demand for rental properties increase.
COVID-19’s impact on the renter market
COVID-19 had a significant impact on the rental market, apartment amenities, rental cost and relocation plans. Entrata’s survey went into detail on the percentage of people the pandemic affected in this way.
- 61% of rental properties’ on-site amenities have been closed or strictly regulated due to COVID-19. (Entrata)
- 14% of renter’s rents were decreased because of restrictions on amenity restrictions. (Entrata)
- 47% of American renters switched to month-to-month payments during the pandemic. (Entrata)
- 31% of individuals are currently holding off on buying a house due to the coronavirus pandemic. (Entrata)
- 56% of renters are planning on relocating post-pandemic. (Entrata)
- 79% of renters whose on-site amenities have been regulated due to the pandemic think their rent should have dropped. (Entrata)
- 42% of renters reported that the pandemic affected their rental rate. (Entrata)
What this means for the rental market
The expectations and behaviors of renters are expected to be impacted for an extended period as renters get accustomed to the changing rental market.
Coronavirus will have long-term impacts on the market, influencing more and more people to rent. Visit Rent. for the most accurate rent statistics and up-to-date information on the rental industry.
