An increased number of build-to-rent tenants say they’re renting by choice, according to the 2024 Build-to-Rent Tenant Survey. 

Conducted for New Home Trends Institute by John Burns Research & Consulting, the survey includes responses provided by 7,625 tenants nationwide in May and June of 2024. 

It found 36 percent of tenants report they prefer to rent their home, compared with 64 percent who ultimately would prefer to own. 

That represents a nearly 10 percent increase from the 2023 survey, which found 27 percent of tenants were renters by choice. 

“We continue to see increases in renters by choice across our portfolio as well,” said Steve Kimmelman, Founder and CEO at Redwood. 

“The benefits of renting are especially evident in our single-story apartments, which are designed to feel like single-family homes thanks to features like attached garages and private entrances. Combine those things with a maintenance-free lifestyle and freedom from the financial burdens that can come with homeownership, and we’re not surprised more people are choosing to rent.” 

The preference to rent is increasing across all life stage groups, the survey found. 

Among young singles and couples, 35 percent of survey responders said they prefer to rent versus 23 percent last year. Twenty-nine percent of young families surveyed say they prefer renting, compared with 17 percent last year. 

Older populations are more consistent but still showing upward trends, with 32 percent of maturing families preferring renting versus 22 percent on last year’s survey. Forty-six percent of maturing singles and couples say they prefer renting compared with 42 percent last year. 

“It increasingly doesn’t matter your life stage – the benefits of renting apply across the board,” Kimmelman said. 

Consistent with last year, preferences to rent versus own are not correlated strongly with income. Life stage tends to play a bigger role. 

No matter the household income, preferences tended to be fairly even on renting versus owning. 

Most tenants – 57 percent – also said they expect to live in their current home for two to three years. 

“And nearly one in three say they plan to stay four or five years – or never move,” Kimmelman said. “We find as residents customize their homes and settle into their neighborhoods, they quickly develop the same bonds to their community that people living in single-family homes do.” 

More than half – 56 percent – of build-to-rent tenants surveyed said they plan to purchase their next home, which is down from 63 percent in 2023. This year, 16 percent are unsure, which is double the number that were unsure in 2023. 

“People are reconsidering what it means to rent a home, because neighborhoods like those developed and managed by Redwood have redefined what it means to live in a rented home,” Kimmelman said. “We think this mindset shift combined with market forces and demographics gives our neighborhoods excellent long-term value.” 

Higher mortgage rates are a factor, too. Forty-seven percent of tenants reported that mortgage rates need to decline for them to purchase a home, which is seven percentage points higher than those who say they need to save for a downpayment before purchasing. 

“Residents are looking at several factors when evaluating homeownership – not just mortgage rates. For many it comes down to finding a home they like with limited options on the market. Others are looking to pay off their debt or raise their credit scores,” Kimmelman said. “And some are still trying to decide if they plan to live in an area long term or are simply waiting for their current lease to end.” 

Redwood will share more findings from the New Home Trends Institute in the weeks ahead. Check back for additional reports. 

Interested in investment opportunities with Redwood? Fill out the contact form to get connected to a member of Redwood’s investor relations team.