Increasing mortgage rates tend to dominate headlines and media coverage, but rental prices have been on the rise as well, impacting millions of people across the U.S. In the fall of 2023, the typical rent surpassed 30% of median household income – meaning, according to the U.S. Department of Housing & Urban Development, the typical American renter was rent burdened. 

“Many are unable or unwilling to sign a new lease at today's prices,” says Zillow Senior Economist Jeff Tucker.

As 2024 approaches, Zillow recently surveyed over 21,000 renters to learn more about the market. Our annual Consumer Housing Trends Report gives landlords, property managers and marketing managers a look at the year's biggest findings around renter budgets, costs, affordability, home and neighborhood preferences, and decision-making.

A few highlights from this year's report:

Renters are more likely to consider budget than any other rental factor

When people are looking to move, affordability remains a top concern for most. For example, 83% said finding a home within their initial budget is highly important. Budget tops all other considerations, including fundamental factors like preferred floor plan and number of bedrooms or bathrooms, and hasn’t dropped below 80% since we first asked the question in 2018. The concern will likely remain front and center for many renters in 2024.

Most renters believe housing prices are too high

By late 2023, the typical U.S. rent had risen 29% in the previous three years. To put that in perspective, during the three years leading up to September 2019, cumulative rent growth was just 13%. 

In our research, about four in five renters (82%) said that housing prices are too expensive compared to fair value. That’s higher compared to the roughly three in five (59%) homeowners who said the same. Only one in six renters (17%) said that housing prices are just right.

Budget was at the heart of renter turnover (or lack thereof). Tenured renters — those who had not moved in the last year — were most likely to say that having a good deal on rental costs encourages them to stay put (72%), followed by those who said they can’t afford to move somewhere else (66%). 

Lower rates could turn many renters into buyers 

With mortgage rates approaching 8%, many renters will likely be priced out of buying their next home. However, transitioning from renter to buyer is still on their minds. 

Almost half (45%) of renters said that they would be “very or extremely likely” to buy a home if mortgage rates fell, versus only one in five (20%) who said the same if rates rise.

Download the report now to get tips on how to provide for your renters and prospects.