Even with rising prices and fees, most plan to remain renters
Today’s Renter: Younger, More Diverse and Digitally Savvy
Renters in 2025 are younger, more racially diverse and increasingly reliant on digital tools to find and secure housing, according to Zillow’s latest Consumer Housing Trends Report. Even with rising prices and fees, most plan to remain in the rental market.
The typical U.S. renter household decision-maker is 41 years old, with half under the age of 40. By generation, Gen Z makes up 44% of recent movers but only 26% of all tenants. Renters are also more racially diverse than the overall adult population, including 49% non-Hispanic white, 19% Hispanic and 19% Black.
Financially, the median renter household earns about $54,000 annually, well below the roughly $80,000 median for all U.S. households. Most tenants are single rather than partnered, a factor that contributes to the lower income profile, Zillow said.
About 56% of renters live in apartment buildings, while 28% occupy single-family detached homes, 8% live in townhouses and 6% in duplex or triplex structures. The median rental home has two bedrooms, one bath and between 1,000 and 1,499 square feet.
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Upfront costs remain a barrier to entry. The median security deposit among recent movers was $795, and application fees typically ranged from $50 to $100. Zillow found notable racial disparities in those fees. Black renters reported paying about $70, compared with $50 for whites, while Latinx and AAPI renters paid $100 and $95, respectively.
Recurring charges are also becoming more common, with 65% in 2025 paying at least one ongoing fee, such as pet rent. Among ages 18 to 29, that share rises to 82%.
Fifty-seven percent of tenured renters (those who hadn’t moved in the past year) said their rent increased over the past two years, with a median hike of $130, or roughly a 12% rise.
The rental search is increasingly digital. Among recent movers, 81% used a mobile website and 73% used a mobile app, both notable increases from 2024. Most applied to multiple units, with a median of two applications. While just over half still signed leases on paper, nearly half said they’d prefer to sign online.
When choosing a rental, staying within budget remains paramount: 93% called it “essential,” followed by location and number of bedrooms.
Two-thirds of recent renters said they considered buying a home during their search a quarter seriously weighed the option. Still, renting remains the dominant choice. Nearly 60% of those planning to move in the next year expect to rent again, while 39% intend to buy. A decline in mortgage rates could shift that balance, with 42% saying they’d be likely to purchase if rates fall.
Concessions continue to attract tenants. Twenty-seven percent of renters said this is the most appealing incentive, followed by a free first month. Technology also plays a growing role in marketing, with one-third of renters calling virtual staging essential and 29% saying the same for interactive 3D tours.
Fee transparency is another top concern. Ninety-four percent of renters believe listings should clearly disclose all fees, and 76% said they prefer those costs be included in total rent rather than itemized separately.
Source: GlobeSt.
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