US Renter Count Projected to Hit 56.3 Million by 2035

The number of US households renting homes is expected to reach 56.3 million by 2035. This represents a 21.7% increase from the current 46.2 million. The share of renting households will rise to 39.3% from 34.3% today. Deloitte’s Center for Financial Services projects this growth based on three distinct economic scenarios. The trend is driven by persistent affordability barriers for potential buyers. Commercial real estate owners are responding by evolving their operating models.

Operators are adopting a living-as-a-service approach to capture value. This model treats housing as an integrated service rather than a static lease. It bundles maintenance, connectivity, and amenities into a single subscription. Renters gain flexibility and reduced responsibility. Owners gain long-term tenant loyalty across their portfolios. This shift aligns with consumer demand for convenience over asset ownership.

Affordability barriers drive rental demand

Rising home prices outpace income growth in many regions. Higher income thresholds are required for home purchases. Down payment requirements remain elevated in competitive markets. Property insurance and tax costs are squeezing household budgets. Mortgage rates are double the levels seen in the 2010s. The 30-year fixed rate briefly dipped below 6% in early 2024. It remains significantly higher than the historic lows of the past decade.

Demographic trends further suppress buying activity. The median age for first-time home buyers is now 40. This is up from the late 20s in the 1980s. Households are delaying purchases due to financial constraints. Older adults are choosing low-maintenance rental options. Geographic flexibility for remote work reduces the appeal of ownership. New for-sale construction has not kept pace with population growth.

Service bundles redefine tenant experience

The living-as-a-service model emphasizes mobility and access. It moves beyond single-cycle occupancy terms. Renters can adapt living arrangements as needs evolve. The platform provides a seamless residential experience. This is attractive to households prioritizing convenience. It reduces the administrative burden on tenants. Owners benefit from standardized service delivery across properties.

This strategy captures loyalty to a single platform. It creates a sticky ecosystem for residents. The model supports tenants through transitions between units. It reduces friction in the moving process. Commercial owners can leverage this for portfolio-wide efficiency. The approach is gaining traction among multifamily stakeholders. It represents a structural shift in property management.

Market dynamics favor subscription models

Inventory limitations for for-sale homes limit buyer options. Population growth outstrips new construction in many areas. This scarcity reinforces the rental market. The Deloitte Center for Financial Services notes these structural factors. The rental sector is becoming the default for many demographics. This creates a sustained demand base for service-oriented landlords. The shift is reshaping commercial real estate strategies.

Owners are investing in technology and service infrastructure. They aim to differentiate through added value. The competition shifts from location to experience. Renters expect digital integration and responsive support. This model aligns with broader consumer service trends. It positions rental housing as a dynamic product. The market is moving toward a service-centric paradigm.