Renters Are Staying Put Longer As Prices Rise, Inventory Shrinks

A growing trend in the United States housing market is renters staying put longer.

A Bank of America Institute survey found the number of people moving is still nearly 40% lower than it was four years ago. It was down 1.6% year-over-year in December alone.

Data suggest that average rent growth is still accelerating and jumped 7.5% year-over-year in December.

Bank of America reported that median rent payments increased nearly 3.3% year-over-year in December 2024, while Consumer Price Index (CPI) inflation data from the Bureau of Labor Statistics (BLS) indicates that rents were up nearly 4.3%.

Renters make up a significant portion of movers and tend to be younger and less affluent.

The survey found that renters in the least expensive ZIP codes are feeling the most pressure from rising rents.

Another challenge facing renters is a lack of supply. Residential building permits for multi-unit properties have decreased in most of the United States except the Midwest.

The survey also found that when people move, they are staying close to where they were living previously with fewer people relocating to a different metro area.

Banks of America uses data from its customers who have a consumer checking, savings, credit and/or other investment accounts to track the number of people moving in the U.S.