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While rent prices for apartment buildings are flattening out because of a supply increase, single-family rentals did not see that same level of construction. That dynamic has kept available supply of single-family rentals low, and prices higher.
"Single family rentals are detached homes, perhaps with a yard," said Jessica Lautz, deputy chief economist at the National Association of Realtors®. Renters looking for a better deal may need to rethink the kind of properties they're focused on in their search.
A construction boom of multi-family buildings helped rein in rent prices for apartment units in the U.S., prompting some economists to dub 2025 as a "renter's market." But single-family rentals did not see that same level of construction, keeping the available supply low.
Multi-family housing often includes many units or separated dwellings within the same building, whereas a single-family rental is often in the form of a detached house. But while there's a lack of single-family rentals compared to multi-family properties, "demographics play a huge role here," said Jessica Lautz, deputy chief economist at the National Association of Realtors®.
The millennial generation — those born between 1981 and 1996 — has had a tough time getting into homeownership. The typical first-time homebuyer in the U.S. is now 38 years old, an all-time high, according to a 2024 report by NAR.