Renters Shift Away From Single Family Homes as Apartment Living Grows
Single-family rental homes are becoming a smaller part of the U.S. rental market, as more renters shift toward apartment living in search of lower costs and more choices.
New data from Redfin, based on U.S. Census Bureau figures through 2024, shows that large apartment buildings now make up 33.1% of all renter-occupied homes. That’s the highest share in more than a decade. At the same time, single-family homes account for just 31% of rentals, the lowest level ever recorded.
Small multifamily buildings represent about 27% of rentals, while townhomes make up less than 9%. Large apartment buildings passed single-family homes as the most common rental type back in 2022, and the gap has continued to widen.
This shift is closely tied to how housing has been built over the past several years. During the pandemic, low interest rates and strong rental demand fueled a wave of multifamily construction. Developers focused heavily on large apartment projects, which offer more predictable income across many units. In many cities, zoning and permitting rules were also relaxed, making apartment construction easier than before.
At the same time, many single-family homes were bought by homeowners during the pandemic. Owners who locked in low mortgage rates are now reluctant to sell, which has reduced the number of single-family homes available for rent.
Affordability is a major driver behind renter behavior. Apartments often offer lower monthly rents, more leasing flexibility, and greater availability. Even though multifamily construction has slowed recently, supply in many markets still exceeds demand, helping keep rent growth in check.
By contrast, single-family rentals are increasingly scarce. Only about 14% of single-family homes are now renter-occupied, and the total number of single-family rentals has dropped to one of the lowest levels in more than a decade.
The trend is especially clear in large, high-cost cities, where apartments dominate the rental landscape. Suburban and lower-density markets still rely more on single-family rentals, but even there, apartments are gaining ground.
The bottom line is simple: renters are choosing apartments because they offer better value and more options in a high-cost housing environment. As long as affordability remains a challenge and homeowners stay locked into low mortgage rates, large multifamily buildings are likely to remain the core of the U.S. rental market.
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