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tenant Looking for better deals may require rethinking the attributes they focus on in the search.
As of January, single-family home rental prices have risen by about 41% since the pandemic. according to Zillow’s latest report. Meanwhile, multiple household rents rose by 26% over the same time frame.
one Building prosperity Multi-family building helps control Rent price For apartment units in the United States, some economists have prompted DUB to be the 2025 “Renter’s market. ”
However, single-family housing does not see the same building level, keeping available supply low. Zillow noted in the report that single-family rental growth is also strong in situations of high demand, as high mortgage rates drive possible buyers away from the sale market.
Multi-family housing usually includes many units or separate residences within the same building, while single-family housing is usually in the form of separate houses.
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The typical asking rent price for single-family homes in January was $2,179, up 0.3% from 0.3% before last year and 4.4% from the same period last year Zillow Established. Meanwhile, the typical rent required for rent in multi-family homes is $1,820, up 0.2% from 0.2% a month ago and 2.7% from last year.
Since Zillow started tracking metrics in 2015, the gap between renting a single-family home and the cost of a unit and unit relative to a unit is the biggest difference.
But despite the lack of single-family housing compared to multi-family housing, “demography plays a significant role here,” said Jessica Lautz, deputy chief economist at the National Association of Realtors. .
If you can’t buy a home yet, but need this space, that’s what the high cost of single-family housing means to you.
“Renters get stuck with longer rent”
Millennials (born between 1981 and 1996) have difficulty getting into home ownership.
this Typical first-time home buyer In the United States, he is now 38 years old, tall in history according to NAR’s 2024 report.
“Renters rented for longer,” said Zillow economist Orphe Divounguy.
This means many people are staying for renters longer. Zillow found in a separate 2024 Report The median age of renters in the United States is 42 years old, and in Zillow’s analysis, millennials account for about 31% of renters, and at the time of the survey, millennials were millennials aged 30 to 44.
As home ownership becomes “so unbearable and out of reach,” the cohort has had to look for larger rental properties to adapt to major life changes, such as getting married, having kids or pets.
Experts say the attractiveness of single-family rent is House ownership experience No same cost. This may make sense for buyers facing challenges in the market to withstand capabilities. Proposing a down payment can be a barrier and can rise in volatile mortgage rates and house prices.
The median selling price of homes nationwide was $375,475 in the four weeks on February 16, up 3.7% from 3.7% a year ago according to Want Redfin.
Meanwhile, the average 30-year fixed-rate mortgage fell to 6.87% for the week ending February 13. data. This is the lowest so far, down from the latest 7.04% peak in January.
What to do at the same time
Factors such as “having good income, a higher credit score and a lower debt-to-income ratio” have investigated the importance of single-family housing for renters, Divounguy said.
Debt repayment can help you improve Debt-income ratiowhich measures your debt repayment obligations relative to income.
When landlords look at your financial situation, it can help them measure how easily they can afford rent based on current income.
Divounguy said the measure is more important for tenants who study single-family rental properties. If you plan to buy a home in the future, conducting an inspection will increase your chances of getting an approved mortgage application.
Overall, keep your bills at the top and make sure you keep your labels Credit Report From the main bureau to ensure that there are no problematic errors when applying. Experts say having a solid credit history will make you more competitive as a tenant and it can also provide you with success if you look at the market for sale.
