Renting: The New American Dream? – March 10, 2025
For decades, it has been a truism that owning a home embodies the American dream and that renting is either an interim solution while amassing a down payment or undertaken simply because the renter has no choice from an economic standpoint. That truism appears to be receding into the distance, at least when it comes to renting by choice.
“The landscape of American living is evolving, and apartment living is no longer just a temporary phase,” said Juan Bueno, president of operations at Atlanta-based owner/developer Cortland. “For many, it’s a deliberate choice due to the flexibility, and amenities renting offers, in addition to enhanced experience, community and freedom from the burdens often associated with traditional homeownership.”
Findings from a recent survey conducted by Cortland support this viewpoint. Forty-three percent of the 1,000 adult renters surveyed by Cortland said renting has enhanced their quality of life compared with owning a home. Among these respondents, affordability (59%), location convenience (51%), and maintenance/support (49%) were the top contributors to quality of life.
Cortland said the data suggest a substantial divergence from traditional views of the American Dream, with only 32% of renters seeing homeownership as part of their ideal life trajectory. For those opting out of buying a home, avoiding maintenance and avoiding debt were the primary motivators, cited by 45% and 40% of respondents, respectively.
Generational trends also indicate shifting perceptions about owning vs. renting. Although 41% of Gen Z and millennial renters surveyed were unsure or doubtful about the feasibility of homeownership, a strong majority ─ 84% of Gen Z and 81% of millennials ─ reported being at least somewhat satisfied with renting as a viable alternative. Among older generations, 71% of renters Gen X and older consider themselves at least somewhat satisfied with their current renting situation as an alternative to homeownership.
For a little perspective on the scale of renting in the U.S., consider that millennials constitute the largest renter cohort at just over 17 million, although they’re no longer renter-majority. However, Gen Z is renter-majority by a sizable margin (74%, according to RentCafe) and is poised to eclipse Millennials as the largest renter cohort.
Additional survey insights include the following:
- The top perceived barriers to homeownership are high housing costs (58%), rising living expenses (52%) and lack of savings (46%).
- Those who intend to be lifelong renters reported having higher expectations for rental properties (53%), and renters overall generally believe renting can meet their needs and preferences in a similar way to homeownership (49%).
- A third of renters who feel renting has enhanced quality of life attributed the improvement to a sense of community (34%).
- While a suburban setting is the most overall desired location (42%) among renters if they knew they would be renting permanently, a plurality (38%) of respondents in the Northeast would prefer urban/city renting.
- Respondents who indicated they had previously owned at least one property were more likely than those who had never owned to indicate renting has increased their quality of life (52% vs. 38%).
“This evolution in housing preferences marks a critical moment for the multifamily industry, as it adapts to meet the needs of a diverse renter population seeking adaptable living options, ease of access and a sense of belonging from their living arrangements,” said Cortland chief experience officer Mike Gomes.
It’s not clear whether the perceptions of renting uncovered in the survey apply primarily to tenants of the traditional, high-quality apartments owned and operated by companies such as Cortland or more broadly to single-family rentals. But perhaps that’s another story for another time.