Renters Are Staying Put Longer Than Ever - And It's Reshaping The Housing Market

Why Baby Boomers Are Renting Longer—and What It Means for the Housing Market

Over the past decade, a significant trend has emerged in the housing market: renters are staying in their homes longer than they used to.  According to a 2023 report from Redfin, 33.6% of U.S. renters have lived in the same home for at least five years, a noticeable jump from 2013. What’s even more striking is that Baby Boomers are leading the pack. This shift isn’t just about longer leases—it has profound implications for real estate professionals, landlords, and potential buyers. Let’s dive into why this is happening and what it means for those navigating today’s housing market.

Why Are Baby Boomers Staying Put?

Baby Boomers—those born between 1946 and 1964—are redefining the rental landscape. For many, the decision to stay in a rental property is about stability, comfort, and convenience. Downsizing after retirement often leads to renting, as maintaining a large home becomes less appealing. Additionally, rising mortgage rates make buying less attractive than staying put in an affordable rental.

Quick Tip: If you're considering long-term renting as part of your retirement plan, ensure your lease terms and conditions align with your needs for stability and flexibility.

Economic Factors at Play

For many renters, especially older generations, affordability is key. Mortgage rates have soared in recent years, pricing out some would-be homebuyers. Renting offers a way to stay in a desirable location without the financial strain of homeownership. In fact, 16.6% of renters have stayed in the same property for over a decade—a number that’s grown significantly in the past 10 years.

Did You Know? Renters who remain in the same property for several years often pay below-market rent compared to newer tenants, creating even more incentive to stay put.

The Emotional Aspect of Long-Term Renting

Staying in one rental home for years often builds a sense of community and familiarity. For Baby Boomers, this emotional connection can be invaluable, especially if they’ve developed relationships with neighbors or feel a strong attachment to their area.

Stat to Consider: In 2023, 17% of renters had been in their homes for 5-9 years, up from just 14.4% a decade ago. This growing trend reflects a shift toward valuing stability over frequent relocations.

What This Means for Home Sellers

As more Baby Boomers and long-term renters stay put, the pool of potential homebuyers shrinks. For sellers, this means crafting unique strategies to attract renters considering a transition to homeownership. Highlighting affordability, convenience, and long-term value can be key to converting renters into buyers.

Pro Tip for Sellers: If you’re trying to reach renters, emphasize move-in-ready options or low-maintenance homes. Many Baby Boomers are looking for simplicity, not renovation projects.

Opportunities for Investors

This trend presents unique opportunities for real estate investors. Long-term renters are reliable tenants who provide steady cash flow. Investors can cater to this demographic by offering homes designed for accessibility and comfort—two priorities for aging Baby Boomers.

Mistake to Avoid: Ignoring maintenance needs or failing to update properties can drive long-term renters to look elsewhere. Regular property improvements keep renters happy and loyal.

My Final Thoughts:

The trend of renters staying put—especially Baby Boomers—is reshaping the housing market in ways we can’t ignore. For sellers, investors, and agents alike, understanding the motivations behind this shift is crucial. Whether it’s affordability, stability, or emotional ties, these long-term renters are here to stay.

If you’re considering selling your home, investing in rental properties, or need advice about the housing market, I’d love to help. And if you know someone who could use my expertise, send them my way—I’d be happy to assist!

Source:  Globest

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Dan McDevitt
Cummings & Company Realtors
Team Leader, Realvolution Homes Group