Tenants should aim for this type of home for a better demonstration

If you are looking to rent a home instead of an apartment, you may be in a price shock.

The cost of renting a house with a single family has increased greatly, exceeding the growth of apartment rents and leaving many tenants stuck in oblivion.

According to a recent Zillow report, the average rental prices for homes with a single family have danced 41% since pre-pecular days, while multi-family units have seen a relatively modest 26% growth in the same period.

This is the second part for a building boom that has flooded the market with new apartment complexes, leading some economists to label 2025 a “market of retail”.

But rented houses with a family? Not so much. The lack of new construction means that the supply remains narrow, and with the still high mortgage rates, potential buyers are staying in the rent market, directing even higher demand.

Zillow’s data show that the price gap between one -family and apartment rents is wider than ever since the start of tracing in 2015.

Home rental with a family in January on average $ 2,179 (with 4.4% from last year) while the rental rental in January an average $ 1,820 (with 2.7% from last year).

This change – about $ 359 a month – is making a harsh decision even for tenants who want a home space, but they can’t afford to buy one.

And while high mortgage rates are a major factor, demography also plays a major role.

For millennia – those who were born between 1981 and 1996 – homeownership is slipping more and more.

First-time home buyers in the US now on average 38 years old-a high of all time, according to a 2024 report by the National Association of Realtors.

And with fewer millennia capable of buying, more of them are rented with a single family as a temporary solution in the premium.

“Tenants are rented for longer,” told CNBC ORPHE Divounguy, an economist in Zillow.

Zillow’s data show that the average age of tenants is now 42 years old, with millennia making up about 31% of all tenants. It is not just a financial crush – life events like marriage, children and even pets are pushing millennia to the largest rented spaces that feel more like homeowners, without mass payments and mortgage obstacles.

If tenants are watching a home instead of an apartment, Divuy emphasizes the importance of “strong income, strong loan outcome and lower debt ratios to income” when applying for rent with a single family.

The landlords examine the most aggressive finances for independent homes than those for apartments, so keeping your credit history clear and manageable debt is essential.

And if home ownership is still the long -term goal, experts suggest staying at the top of credit reports and ensuring that all bills are paid on time.

At the average price of the house now at $ 375,475, and 30-year-old mortgage rates that suspend about 6.87%, being financially preparing they could now pay the road.