The Single-Family Rental Is on the Decline

Key Terms

multifamily housing technical

Housing that contains multiple separate rental units within one property—such as apartment buildings, duplexes, or condo complexes—where each unit is occupied by a different household. Investors care because these properties generate regular rental income, spread risk across many tenants (like multiple eggs in one basket), and are sensitive to local rent levels, vacancy rates and interest rates, which together drive property value and cash flow.

Redfin reports a record 33% of U.S. rentals are in large multifamily buildings, while 31% are single-family homes—a record low

SEATTLE--(BUSINESS WIRE)-- Roughly one of every three (33.1%) renter-occupied housing units in America is located in a large multifamily building—the highest share in records dating back to 2011—according to a new report from Redfin, the real estate brokerage powered by Rocket.

By comparison, 31% of rentals are single-family homes—the lowest share on record. Units in small multifamily buildings make up 27.3% of the nation’s rental stock, and townhomes make up 8.5%.

Large multifamily buildings surpassed single-family homes as the most common type of rental housing in 2022, when multifamily construction was on the rise during the pandemic moving frenzy.

This is based on a Redfin analysis of U.S. Census Bureau data through 2024—the most recent year for which data are available.

Construction of both multifamily housing and single-family homes has generally been on the rise since the aftermath of the Great Recession, but multifamily construction has grown at a faster clip—especially during the pandemic. Rental demand jumped during the pandemic moving frenzy, and ultra-low interest rates made it easier for builders to construct more rentals to accommodate that demand. Rental housing is often an attractive option for investors because it can offer higher cash flows, diversified revenue streams, potential for scale, and tax benefits. Some cities have made it easier to build multifamily housing in recent years.

“Big apartment buildings make up a growing piece of the rental-market pie because America has been building a lot of them, which has made them more affordable for renters,” said Redfin Senior Economist Asad Khan. “Increased supply gives renters more options and more room to negotiate prices. While multifamily construction has slowed recently, there are still more apartments for rent than people who want to rent them, which has kept rent growth at bay.”

Construction of large multifamily buildings hit a record in 2024. Meanwhile, single-family-home construction remains below levels seen during the early 2000s housing bubble, and most of the single-family homes that are built go to homebuyers, not renters.

“Record-low mortgage rates during the pandemic drove Americans to buy up a large chunk of the single-family homes on the market, meaning the pool available for renters shrunk,” Khan said. “The people who own these homes are now hesitant to move because housing costs have soared, and they’re typically locked into low mortgage rates. That makes the single-family-home market locked up for both renters and buyers, and keeps prices high.”

Roughly 1 in 7 Single-Family Homes Are Rentals—a Record-Low Share

Just 13.7% of single-family homes are occupied by renters, the lowest share in records dating back to 2011.

In total, there are 11.3 million single-family-home rentals in the U.S.—the third lowest level on record. By comparison, there are 12.1 million rental units in large multifamily buildings—the highest level on record. There are 10 million rental units in small multifamily buildings, and 3.1 million townhome rentals.

New York Has the Highest Share of Large Multifamily Rentals

In New York, 69.1% of rentals are in large multifamily buildings—the highest share among the 50 most populous U.S. metropolitan areas and more than double the national share. It’s followed by Minneapolis (61.5%), Seattle (52.5%), Miami (51.3%) and Boston (49.9%).

On the other end of the spectrum is Virginia Beach, VA, where just 22.6% of rentals are in large multifamily buildings—the lowest share among the top 50 metros. Next come Cincinnati (23.9%), Detroit (24.4%), Riverside, CA (24.6%) and Warren, MI (24.7%).

In general, the places with the highest shares of multifamily rental stock are more dense and more expensive, which explains why there are so many multifamily rentals.

In New York, just 4.3% of rentals are single-family homes—the lowest share among the top 50 metros. Next come Philadelphia (6.5%), Washington, D.C. (9.4%), Boston (10.4%) and Baltimore (11.1%).

The metros with the highest share of single-family-home rentals are Riverside (49.5%), Nassau County, NY (45.7%), Detroit (45.1%), Sacramento, CA (41%) and Las Vegas (38.9%).

The Sun Belt Has Seen a Boom in Multifamily Rentals Over the Past Decade

In Dallas, 46.3% of rentals are in large multifamily buildings, up from 29.2% in 2014. That 17-percentage-point increase is the largest increase among the top 50 metros. Next come Phoenix (15.9 ppts), Seattle (14.6 ppts), Atlanta (13.7 ppts) and Jacksonville, FL (13.7 ppts).

Zero metros saw a decline. The smallest increases were in New York (0.9 ppts), Nassau County (1.5 ppts), Detroit (2.2 ppts), West Palm Beach, FL (2.9 ppts), and San Francisco (3.5 ppts).

When it comes to single-family rental share, only two metros have seen an increase over the past decade. In Philadelphia, 6.5% of rentals are single-family homes, up 0.2 percentage points from 6.3% in 2014. Anaheim was the other metro that saw an increase (0.01 ppt).

The metros that saw the largest decreases in single-family rental share over the past decade are Phoenix (-11.7 ppts), Charlotte, NC (-9.3 ppts), Tampa, FL (-8.9 ppts), Orlando, FL (-8.7 ppts) and Seattle (-8.7 ppts).

To view the full report, including charts, methodology and additional metro-level insights, please visit: https://www.redfin.com/news/rental-housing-multifamily-vs-single-family

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260129684032/en/

Contact Redfin

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Kenneth Applewhaite

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Source: Redfin