The real estate market is undergoing a transformation. If you’ve been paying attention, you’ve probably noticed the trend: we’re quickly becoming a nation of renters instead of a nation of owners.

Homeownership is slipping out of reach for many, and instead, more people are choosing to rent. This isn’t just a short-term trend—it’s a fundamental shift in how people are living. And for investors, this presents a massive opportunity for many of us.

Let’s explore what’s behind the Rise of Renter Nation and, more importantly, how you can turn this trend into an opportunity.

Why Is Renter Nation on the Rise?

The move toward renting is fueled by several major factors:

1. Affordability Crisis

Home prices are skyrocketing. And that’s not going to change in most markets as inflation in homebuilding materials remains stubbornly high. Couple that with increasing interest rates, and many people are simply priced out of the housing market. According to a 2023 Bankrate survey, 73% of aspiring homeowners cite affordability as their primary obstacle to purchasing a home. Renting has become the only viable option for a large portion of the population, and this trend shows no signs of reversing.

2. Shifting Priorities

Millennials and Gen Z value the flexibility in how they spend their time and money over the long-term commitments required for homeownership. They prefer investing in experiences, education, or career growth rather than tie up their finances in a mortgage. Even Baby Boomers are downsizing and choosing the convenience of renting.

3. Economic Uncertainty

The past few years have been a rollercoaster—pandemics, inflation, and recession fears have made people hesitant to take on significant financial risks. Renting offers a sense of security without the long-term financial burden of owning a home.

4. The Suburban Migration

People are leaving crowded cities in favor of the suburbs. They want more space, better schools, and a higher quality of life. This suburban shift is driving demand for rental properties in these areas, creating lucrative opportunities for investors who act now. As recently as 10 years ago, “Build-To-Rent” (BTR) communities were introduced to meet this demand. These neighborhoods, designed specifically for renters, are springing up in the suburbs and being funded by institutional investors. This movement is here to stay, solidifying the suburbs as a prime target for rental property investment.

How to Make the Most of the Rise of Renter Nation

This shift toward renting is a golden opportunity, but only if you position yourself strategically. As a real estate investor, you’ll want to focus on assets that align with today’s market dynamics, trends, migration patterns and demographic shifts. By staying aligned with these movements—or partnering with someone who already is—you can unlock the immense potential of multifamily properties as a key to your future success.

Why Multifamily Housing Is the Smart Play in Renter Nation

I’ve been in the real estate business for over 20 years, and multifamily properties have become the cornerstone of my strategy. Here’s why they’re so powerful:

1. Soaring Rental Demand

Permitted starts and completion of new units consistently lag behind demand. With the number of renter households in the U.S. exceeding 44 million, the demand for multifamily housing has never been higher. Millennials, Gen Z, and Baby Boomers alike are driving this surge, creating consistent occupancy and stable cash flow for investors.

2. Economic Resilience

The value of existing multifamily properties will continue to trend higher over the long term in the face of continued inflation of rents. In that same vein, consider the replacement cost or the cost to build new is far higher today and will drive valuations of existing multifamily properties higher.  Also consider that multifamily properties spread risk across multiple units. If one or two units are vacant, the property still generates income. This makes it a safer, more reliable investment, especially during uncertain economic times.

3. Scalability

Instead of managing one single-family property at a time, multifamily properties allow you to scale your investments quickly. With multiple units under one roof, you can maximize efficiency and grow your portfolio faster. Personally, I’d much rather spend my time securing a loan for 50 units than for just 1 or 2. It’s a smarter use of resources and a faster way to build long-term wealth.

4. The Suburban Shift

Advancements in technology, along with continued societal acceptance, will continue to fuel remote workers and support the shift to the suburbs. The migration to the suburbs is fueling demand for multifamily housing in these areas. Suburban multifamily properties offer the perfect blend of affordability and lifestyle that today’s renters are seeking.

5. Long-Term Cash Flow

Multifamily investments can generate steady, passive income while appreciating over time. Tenants cover the mortgage and bills, leaving investors with reliable returns. In a world where homeownership is increasingly viewed as a burden, owning rental properties offers reliable returns and a path to create wealth and greater freedoms for the long haul.

The Data Speaks for Itself

The numbers are clear: multifamily properties are uniquely positioned to meet the demands of a growing renter population. Whether you’re just starting out or looking to scale your portfolio, these properties offer a proven path to long-term financial success.

Let’s Take Action Together

The Rise of Renter Nation isn’t just a headline—it’s a shift that’s reshaping the real estate landscape. If you’re ready to make the most of these trends, now is the time to act.

Let’s talk about how you can position yourself for success. Book a free strategy session with me now!