Lifestyle Trend: Why Multifamily Renters are Saying "No" to Homeownership

Key Points:

• 40% of renters in large multifamily buildings no longer see homeownership as part of their American Dream, according to Entrata.

• The Single-Family Rental (SFR) and Build-to-Rent (BTR) sectors are expanding to meet demand from lifestyle renters prioritizing amenities over ownership.

• 60% of renters cite maintenance-free living as their top reason for choosing rental homes.

The American Dream is being redefined—not by ownership, but by access, convenience, and experience. According to a recent Entrata survey, 40% of renters in large multifamily properties no longer view owning a home as a life goal. This shift is fueling a national trend: the rise of the lifestyle renter, a growing demographic choosing flexibility, luxury amenities, and convenience over the burdens of ownership.

Who Are Lifestyle Renters?

• Typically younger than homeowners, with an average age of 44—about 10 years younger than the average homeowner.

• Includes Gen Z, Millennials, and downsizing Baby Boomers.

• Prioritize modern, well-maintained housing with features like smart technology, private outdoor spaces, and proximity to cultural hubs.

Why Renting is Trending

• Shifting Societal Norms:

  • The stigma of lifelong renting is fading.

  • Remote work and flexible jobs have made renting in suburban and rural areas more attractive.

• Diverse Housing Options:

  • Growth in the SFR and BTR sectors offers more variety in location, home styles, and luxury amenities.

  • BTR communities are popping up across the U.S., tailored to renters who want the feel of homeownership without its strings.

• Lifestyle Flexibility:

  • 60% of renters prefer the maintenance-free lifestyle renting offers, avoiding upkeep hassles like lawn care or repairs.

  • Flexibility to relocate or downsize easily.

• Premium Locations & Amenities:

  • Access to outdoor spaces, garages, high-speed internet, and on-site fitness facilities.

  • Proximity to job centers and cultural attractions is a major draw.

• Investments in Technology & Comfort:

  • New SFR and BTR developments are heavily investing in smart home technology, luxury clubhouses, and pools to meet rising expectations.

  • Walk-up, outdated apartments are losing appeal.

Be Smart: Investor Takeaways

• The SFR market now counts 14 million households—a number that’s steadily growing.

• Investors targeting lifestyle renters should focus on high-end amenities, smart technology, and prime locations.

• The ongoing shift suggests strong long-term growth potential for the SFR and BTR sectors, especially as younger generations redefine what stability and success look like.

For investors, the message is clear: focus on quality rental properties with premium amenities to capture this evolving market.