Evolving Renter Demographics & Multifamily Living 2025
Multifamily
The Evolving Renter Demographic and the Future of Multifamily Living
By ExactEstate7 min read
Last reviewed: July 2026
Property Management
If you’ve been a property manager for even a few years, you’ve probably noticed changes in tenant behavior and priorities as younger crowds begin moving in. They not only bring fresh energy to your properties, but they have their own ideas about lifestyle preferences, expected amenities, and financial priorities.
Property managers have to keep pace with the ever-changing demographics of their resident populations and stay on top of emerging trends. But how well do you know the people who are signing your leases? Are you sure you know what they’re looking for today and down the road from a property?
Fortunately, the next generation of renters is doing a lot of talking—and we’ve been listening! Here’s what we know about today’s tenant population and what they’re looking for from multifamily living.
Modern Renter Demographics: What You Need to Know
A 2024 report from Experian explored the statistics defining today’s average renter. These details will help shape how you set your rental prices and the investments you make to attract them to your property.
Age Distribution
Right now, a significant portion of the rental market consists of younger people. That’s especially true of Gen Z, which accounts for 30.5% of the entire market (a 3.5% increase over a year). Combined with Millennials under 35, they comprise more than half of the rental population. What does that mean for your property? Families with young children and student loans who prioritize digital connectivity as part of their living experience.
Continue reading
More property management guidance from ExactEstate.
See ExactEstate on your own portfolio
Take a focused 20-minute walkthrough built around the properties and programs you manage.
The typical renter’s income has gone down recently. Between January 2023 and January 2024, Experian’s data saw average RentBureau renter incomes fall from $53,100 to $52,600. (For context, RentBureau income is based on modeled income estimated through predictive factors like credit data.) It may not be a big shift, but with inflation driving up the cost of necessities like food and gas, $40 a month could be a significant factor.
Rent Expenses
As of 2024, more than half of all renters in the US paid more than $1,500 per month on rent—and Gen Z renters paid a monthly average of $1,600. That means the average renter spent 44% of their monthly income on rent payments, while renters with low to moderate income spent more than half of their income on rent.
In short, the “30% rule” for gross income/rent is starting to fade into the past. Renters will pay higher rates, but they’ll want to get more out of it in terms of amenities to offset the cost. Property managers will need to leverage their PMS to optimize operations and free up investment capital for upgrades and updates.
Willingness to Move
A renter’s likelihood of moving depends in part on their generational cohort. Younger Millennials and members of Gen Z move more often than people in older age groups. The factors behind this shift include:
Alignment with lifestyle preferences
Affordability
Diverse communities
Efficiency
However, current trends still strongly indicate that 92.5% of renters tend to stay in one residence for two years, so if you’re considering some upgrades in the near future, you may be able to tip the scale.
Other Renting-Related Factors to Consider
The statistics listed above can go a long way toward helping you understand modern renters. However, they don’t tell the whole story on their own. Property managers will need to consider whether their multifamily units are prepared to support:
The continued popularity of remote work. In 2024, 27% of US workers worked a hybrid schedule (up from 26% in 2023). Meanwhile, the percentage of fully remote American employees increased from 7% in 2023 to 11% in 2024.
Sustainability-related expectations. Millennials and members of Gen Z are passionate about sustainability. 64% of Gen Zers are willing to pay more for eco-friendly products and services, and the same is true for 63% of Millennials.
A widespread desire for community. Millennials and Gen Zers grew up during the COVID-19 years, and it’s had a strong impact on their desire for human connections. In fact, one study found that 53% of Gen Zers reported feelings of isolation, and remote work situations aren’t making it any easier. Community areas, activities, and the ability to communicate efficiently are all valuable lifestyle options they crave.
Preparing For the Future of Multifamily Living
So how can you ensure your properties are aligned with these complex and emerging needs? Data can help you establish baselines for making key business decisions, investments, and strategic adjustments to capitalize on these trends.
Accurately Assess Fair Market Value
Considering the financial issues that today’s typical renter faces, it’s not hard to understand why renters tend to be cost-conscious. If your property management software is capable of giving you solid data for analyzing fair market value and setting prices in accordance with a range of factors like median income, regional financial stressors, and competitive landscape, you’ll be in a position to pivot quickly and establish optimal values.
Taking Sustainability Seriously
If you can offer truly eco-friendly housing, younger renters will have another reason to choose your multifamily building. Adding smart thermostats, smart lighting, and other forms of smart technology to your units can improve your energy efficiency while enhancing your bottom line. Other sustainability-related steps you can take include adopting low-flow water fixtures, installing solar panels, and designing new buildings with the environment in mind.
Considering Remote Workers’ Needs
For many people living in multifamily buildings, these spaces aren’t just homes—they’re offices, too. That means it’s in your best interest to consider remote work setups while planning new multifamily buildings.
As part of this, you may want to include work-friendly amenity spaces in your buildings. These “co-working lounges” can give your residents a place to get work done while having easy access to coffee, strong Wi-Fi, and other benefits.
Work-from-home trends can also influence apartment unit design. Some property developers now offer units that include one and a half bedrooms (with the half bedroom intended to function as office space). Meanwhile, tenants living in apartments with open floor plans can rearrange these spaces as they see fit.
Helping Residents Feel Connected
No matter where they live, people don’t want to feel isolated from their neighbors. Instead, they want to be part of a true community—and property managers can help. By holding regular events for your tenants, you can give them an opportunity to connect with neighbors and meet new people.
Some events or activities you could provide in your multifamily building include:
Fitness classes
Book clubs
Coockouts
Arts and craft classes
Food truck festivals
Movie nights
Of course, your residents will need to know about these events for them to have their intended effect. When you offer a resident portal to people in your building, tenants will get constant updates on what’s happening in your community. Resident portals also make it easier for people in your buildings to submit work orders, make payments, and ask questions, so they’ll experience a lot of support as they spread their wings.
Use Software to Streamline Multifamily Management
Along with the steps described in this article, technological improvements to your property management workflow can help future-proof your multifamily buildings. If you don’t use a property management program (or if your current property management program is out of date), it may be time to upgrade to a system that will give you the best chance to capitalize on these trends.
Modern property management programs give property managers the power to set up resident portals, get powerful real-time data for their buildings, and manage work orders with maximum efficiency. You can learn more about this cutting-edge software by setting up a demo of ExactEstate.
