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Renters looking for a better deal may need to rethink the kind of property they are focusing on in their search.
As of January, median rent for a single family had risen by about 41% from before the pandemic, according to a recent report from Zillow. Meanwhile, multi-family rents have increased by 26% over the same time frame.
The multi-family building construction boom has helped to keep rent prices for US apartment units, prompting some economists to dub 2025 as a “renter market.”
However, detached house rentals did not see the same level of construction, keeping available supplies low. Zillow said that growing single-family rents remains strong as the mortgage rates become buyers from the sales market due to the high mortgage rates.
Multifamily homes often include many units or separate residences within the same building, but detached home rentals are often in the form of detached homes.
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The typical rent sought for a detached house in January was $2,179, a 0.3% increase from a month ago and a 4.4% increase from a year ago, Zillow found. Meanwhile, the typical rental for apartment building real estate was $1,820, an increase of 0.2% from a month ago and 2.7% from the previous year.
The gap between the cost of renting a single-family home and a multi-family apartment unit is the biggest difference Zillow has recorded since it began tracking metrics in 2015.
However, Jessica Rautz, Associate Chief Economist for the National Association of Realtors, said:
If you can’t afford a house yet but need space, the high cost of a detached house rental means to you.
“The tenants have been renting for a long time.”
Born between 1981 and 1996, millennials struggle to get into homeownership.
According to a 2024 report from NAR, the typical first-time homebuyer in the United States is 38 years old, the highest ever.
“Renters have been renting for a long time,” said Orphe Divounguy, an economist at Zillow.
This means that many people remain with tenants longer. In another 2024 report, Zillow found that the median age of US tenants is 42 years old, with millennials accounting for around 31% of US tenants in Zillow’s analysis .
As homeownership becomes “very affordable and out of reach,” cohorts are able to rent out larger properties to accommodate major life changes, such as getting married or having children or pets. I had to find it.
According to experts, the appeal of single-family rentals is homeownership experiences that don’t cost the same. That makes sense for buyers facing affordable pricing challenges in the sales market. Devising a down payment can be a hurdle, not only navigating unstable mortgage rates and rising home prices.
According to Redfin, the median nationwide sales price was $375,475 in the four weeks ending February 16th, at $375,475, an increase of 3.7% from the previous year.
Meanwhile, per Freddie Mac data, the average 30-year fixed-rate mortgage for the week ending February 13th was inched out to 6.87%. This is the lowest ever, down from its latest peak in January, 7.04%.
What to do in the meantime
Factors such as “strong income, strong credit scores, low debt-to-income ratios” are essential when renters are looking into detached homes, Divounguy said.
Paying off your debt will help you improve your debt ratio, which measures your obligation to pay off your debt to your income.
When a landlord looks at your finances, it helps them measure how easily you can buy rent based on your current income.
Divounguy said the scale is even more important for renters considering single-family rental properties. If you plan to buy a home in the future, reducing this will increase your chances of receiving an approved mortgage application.
Overall, stay above your invoice and get a grasp of the credit report tabs from the main bureau to ensure there are no errors that may cause problems when applying. Having a solid credit history makes you more competitive as a tenant and can also be successful when looking at the sales market, experts say.
