Young Americans Are Renting Longer, Reshaping Housing Demand

September 30, 2026

For young Americans, rental housing is no longer just a stop along the way.

Nine in 10 adults under 40 say buying a home is harder today than it was for their parents’ generation, according to a Pew Research Center survey published in June. That perception is increasingly backed by the numbers: a growing population of young Americans is likely to depend on rental housing for longer, even as they advance in their careers, form families and put down roots in their communities.

This speaks to a lasting demand for multifamily housing options to serve not only these long-time renters, but also the next generation of workers launching their independent lives.

In fact, the National Association of Realtors says renters are staying in their homes longer – an average of 6.5 years in 2024, up from 5.9 years in 2019.

Pew’s analysis shows why the transition from renting to owning has become more difficult.

• Home prices have far outpaced income growth. Between 2019 and 2024, inflation-adjusted median household income for households headed by adults under 40 rose 9%, from $92,700 to $100,900. The inflation-adjusted median home value increased 30% over the same period.
• Affordability has collapsed for young buyers. The price-to-income ratio for young buyers is now 3.5 -- matching mid-2000s housing bubble levels –and a modeled monthly payment on a median-price home is up roughly 64%. The share of young renter households able to afford homeownership has fallen from 56% to 37%.
• “Very affordable” metro areas are nearly extinct. The share of metropolitan areas classified as “very affordable” fell from 14% to just 2%, while the “very unaffordable” share rose from 14% to 19%.
• The upfront cost of entry has jumped 30%. A 3.5% down payment plus estimated closing costs required about $17,500 in cash in 2019, according to Pew. By 2024, the amount had risen to approximately $22,800—a 30% increase.

But it isn’t just the math that keeps renters in their homes. High-quality communities that meet their needs through enhanced design, amenities, and lifestyle offerings can also encourage renters to stay renters for longer.

“As a developer and manager of rental housing, we can’t solve every hurdle keeping young Americans from home ownership,” said Clay Grubb, CEO of Grubb Properties. “But what we can do is meet them where they are today by providing efficiently designed apartments at attainable price points with sensible amenities in locations connected to jobs, transit and everyday services in our Link Apartments communities.”

Grubb Properties rewards renter longevity by capping rental rate increases for all residents who stay at one of their communities for five years or longer. Nine of our communities have renters who are part of this program, and at those properties, an average of 8.2% of their residents are long-term residents.

That includes the very first residents at Link Apartments® West End in Greenville, SC, who moved in in February 2017 and continue to live there nearly 10 years later.

“Their story is a special reminder that a great apartment may bring someone through the door, but exceptional service, meaningful relationships, and a true sense of home are what can make them stay,” said Erin Troutman, portfolio marketing manager at Grubb Properties.

Clay Grubb also believes housing strategies centered only on ownership leaves too many people behind. “Someone may rent while saving for a down payment, or they may prefer the flexibility of renting, but that does not make their apartment any less of a home.”

He also believes that more housing supply is what will ease the cost of housing, and calls on public officials to contribute to the rental solution by reducing approval delays, allowing for parking solution flexibility, and permitting more housing where demand is strongest.

Learn more about Grubb Properties’ essential housing approach and our Link Apartments® communities here.