Renting a property is common for many Americans at some point in their lives. Whether they are attending college, moving to a new city, or just not ready to purchase a home, most people have likely rented a home or apartment before.

But in recent years, being a renter in America has become increasingly more expensive, with the majority (52%) of renters in the U.S. paying over 30% of their income on rent. ^[1] The U.S. Department of Housing and Urban Development defines this population as “rent-burdened,” and those who pay more than 50% of their income on rent are severely rent burdened. ^[2]

Additionally, mortgage rates rose to the highest they’ve been in 23 years in 2023, according to The Federal Home Loan Mortgage Corporation, making the leap from renter to homeowner even more challenging. Read on to learn more about who in the U.S. is renting, the costs of renting, what renters are looking for and more.

Renting Statistics in the U.S. at a Glance

• 34% of occupied housing units are occupied by renters, which accounts for 45,221,844 total units. ^[1]
• House prices have outpaced rental prices by more than 40%, however, rental prices have also increased significantly. Recently, a notably high increase occurred between the fourth quarter of 2020 and 2021, when the median price for an apartment jumped from $1,600 to $1,800. ^[3]
• The majority of renters report they’d like to live in an apartment (54%) followed by 35% reporting they’d like to live in a single-family home. ^[4]
• 43% of renters report paying 35% or more of their income on rent. ^[1]
• About 70% of rental properties are owned by individuals and less than 20% are owned by for-profit businesses. ^[5]
• 82% of renters say home prices are too high, and nearly half (45%) of them report they would be likely to buy a home if prices lowered. ^[4]
• Most renters live alone or have one roommate. The opposite is true of homeowners, as more homeowners live with at least one other person versus living alone. ^[1]

Renting Statistics

• 52% of American renters live in an apartment, followed by 29% living in a single-family detached house. ^[4]
• 60% of U.S. renters pay their rent online, but 69% would prefer to. ^[4]
• The typical renter looking for a property uses five websites or apps during their search process, with nearly one-fifth of renters using 10 or more. ^[4]
• 54% of renters reported receiving at least one concession when moving into a new rental property, with parking being the top concession reported (25%), followed by reduced rent (13%) and first month free (13%). ^[4]
• American renters report living in a rental property close to shopping, services, and/or leisure activities is of higher importance (56%) than living close to family and/or friends (39%). ^[4]
• The majority of U.S. renters live in a two-bedroom rental unit (40%) and have one bathroom (58%). ^[1]
• The majority of rental units in America are between 1,000 to 1,499 square feet (26%), followed by 750 to 999 square feet (23%). ^[1]

Renter Demographics

Renting a home or apartment is usually the first step after moving out of your parents’ house. However, data shows that Americans aren’t moving on from renting after graduating college or even after finishing their 20s.

• The majority of American renters are between 35 to 44 years old, followed by those under 29 years old. ^[1]
• The majority of American renters are white (60%), followed by Black or African American (19.9%), Hispanic or Latino (19.8%), Asian (6%), American Indian and Alaska Natives (0.9%) and Native Hawaiian and Other Pacific Islander (0.2%). ^[1]
• Black or African American, Native Hawaiian or other Pacific Islander, Hispanic or Latino and Asian dwellers were all more likely to rent than own, whereas white dwellers were more likely to own than rent. ^[1]
• A high school graduate is the most common educational attainment of American renters, followed by a bachelor’s degree. ^[1]
• Most American renters who live with their partners are married. ^[1]
• The majority of American renters don’t have children. ^[1]

Cost of Renting

The cost of housing is usually the largest monthly bill for consumers, and nearly all (94%) American renters say staying within their initial budget is “essential” when choosing a rental home. ^[4] However, there are other things to budget for when renting, including costs for utilities, application fees, deposits, and more.

• The typical monthly rent nationwide is $2,011, according to Zillow. ^[4]
• The change in typical rent from last year is 3%. ^[4]
• 90% of U.S. renters report paying monthly utilities separate from their rent. [1]
• Renters most often report paying between $50 to $99 for monthly utilities (26%), followed by paying between $100 to $149 (21%). ^[1]
• The average monthly cost for renters insurance is usually less than $25. ^[1]
• The vast majority (91%) of renters report paying a security deposit when moving into a new rental property, but only 42% say they had their deposit returned in its entirety when moving out. ^[4]

Average Rent by Area

Rent prices can vary from coast to coast, so picking the right location that works for your wallet is of utmost importance.

• Hawaii has the highest average monthly rent costs at $2,361. ^[6]
• California places second with an average monthly rental cost of $1,917, followed by Washington, D.C. ($1,901) and New Jersey ($1,810). ^[6]
• North Dakota has the cheapest monthly rent cost across all 50 U.S. states and Washington, D.C., with an average price of $897 per month. ^[6]
• South Dakota ranks just below North Dakota, averaging $943/month for rental costs, followed by Iowa ($953) and Kentucky ($987). ^[6]

What Are Renters Looking For?

Most American renters would like to rent an apartment (54%), with the largest share hoping for a smaller unit building, with less than 10 total units (42%). ^[4]

• 84% of renters said it’s a top priority for their prospective rental property to have their preferred number of bedrooms. ^[4]
• 61% of renters want their neighborhood to be walkable, followed by 59% reporting their commute to work or school is very important when considering a new rental. ^[4]
• 45% of renters would like their rental property to be newly built or renovated. ^[4]
• Rental properties having a fitness center/gym ranked higher in importance in 2023 (with 24% reporting this amenity is important to them) than any other year after 2018. ^[4]

Renter Amenities

Popular amenities for prospective renters include a parking spot, dishwasher, washer and dryer or laundry facilities on site, a pool and/or gym and a backyard, among others.

• The most common amenity for renters is a porch, deck, balcony, or patio (72%), followed by a separate dining room (34%). ^[1]
• Less than 50% of renters have access to a garage or carport (39%). ^[1]
• Over half of American renters report having a dishwasher (61%) in their rental unit. ^[1]
• The majority of renters have air conditioning (90%), with most renters reporting their rental has electric air conditioning (68%). ^[1]
• The majority of renters report having a washer (65%) and dryer (64%) in their rental units. ^[1]
• Only 2% of renters reported having solar panels in the rental units, compared to 5% of homeowners. ^[1]

Rental Unit Quality

Having a good landlord to upkeep the rental property is vital. However, some renters report living in subpar conditions including inadequate plumbing, heating, electrical systems and/or general upkeep of the property.

• 2% of renters reported having severely inadequate rental unit quality, with the largest portion of respondents reporting inadequacy with heating (59%). ^[1]
• 6% of renters reported having moderately inadequate rental unit quality, and 92% reported having adequate rental unit quality. ^[1]
• The most common deficiency for renters in 2021 was signs of cockroaches (16%), followed by signs of mice or rats inside the home (11%). ^[1]
• 11% of renters reported being “uncomfortably cold for 24 hours or more” in 2021. ^[1]
• 7% of renters reported having fuses or breakers blown in 2021, and 5% reported having water supply stoppage. ^[1]
• 5% of renters reported having mold in their rental units, with it most commonly growing in the bathroom (57%). ^[1]
• 17% of renters reported tobacco smoke inside their rental units. ^[1]

Regional Rent Statistics

Some areas of the U.S. are more favorable than others, with four of the best cities for renters being in Arizona, and two of the worst cities for renters being in California ^[7], according to a Forbes Advisor study.

• In 2021, nearly half of the counties where renters were paying the highest median housing costs compared to their incomes were located in the South. ^[1]
• Rental vacancy rates increased in the U.S. from 2022 to 2023, with the West seeing the largest increase.
• The South saw the second-highest rental vacancy increase this year and is home to the highest rental vacancy rate overall. ^[1]

Moving Statistics

Moving can be an exciting endeavor, but the list of tasks when moving (including research, planning, touring new spaces, paying upfront costs and getting renters insurance) can also be long.

• Moving to a larger or better quality home was the most common reason for moving.
• It’s typical for renters to submit two applications before locking in a rental unit, with the most common application fee being $50 (84%) to secure their current rental. ^[4]
• The majority of U.S. renters report paying a security deposit between $500 to $999 (87%). ^[4]
• Latinx and Black, non-Hispanic renters were at least 13% more likely to submit two or more applications when applying for a rental unit than white, non-Hispanic renters. ^[4]
• In 2023, most renters that moved stayed in the same city, but went to a different neighborhood (40%). The second most common move was to a different city within the same metropolitan area (19%). ^[4]
• The majority of U.S. renters participate in one to four in-person tours when looking for a new rental property (74%), with 19% reporting they didn’t participate in any tours before locking in a rental unit. ^[4]

What Does Renters Insurance Cover?

While state law might not require you to buy renters insurance, your landlord might still ask for it. Even if it’s not mandatory, it’s wise to research the best renters insurance options to keep you and your stuff safe.

Renters insurance usually combines a few coverages, including:

Personal property coverage

This type of coverage protects the items you own in your rental such as furniture, clothes and electronics. It helps cover damages resulting from issues specified in your policy such as fire, vandalism or theft. When obtaining a policy, you select the amount of personal property coverage you desire, such as $10,000 or $20,000, known as your coverage limit. In the event of damage to your belongings, you will be required to pay a deductible before the insurance company covers the remaining expenses.

Your policy may also include special limits or sub-limits for specific types of losses. For instance, if there is a $5,000 limit on electronics and your electronics are valued at $7,500, you will need to increase your coverage to ensure adequate protection.

Liability coverage

This portion of your policy protects you from claims for injury or property damage for which you might be responsible. For example, if your dog bites the mailman, liability insurance can help cover his medical expenses. In the event of a lawsuit, it can also cover your legal fees. Renters insurance policies typically include $100,000 in liability coverage.

Additional living expenses

If a fire, windstorm, or another covered event forces you to leave your rental, additional living expense coverage can assist with the related costs. This coverage can help pay for things like your accommodations, restaurant meals, and other essential expenses.

How Much Does Renters Insurance Cost?

Renters insurance typically costs an average of $173 per year, providing coverage for $15,000 in personal property, according to analysis conducted by Forbes Advisor. If you decide to increase your coverage to $30,000 worth of personal property, the average cost rises to $227 per year.

The amount you’ll pay for renters coverage depends on various factors, such as:

• Your ZIP code
• The type of coverage you select
• Coverage limits and deductible amounts
• Your renters insurance claim history
• Safety features in your rental, such as deadbolts, fire alarms, and security systems

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