Homeownership Is Out. Renting Is In. Why Multifamily Real Estate Is A Great Bet in 2025

For decades, owning a home was considered the pinnacle of the American Dream. But for a growing number of Americans, that dream is being redefined. Rising home prices, lifestyle shifts, and economic uncertainty are pushing more people toward long-term renting—and many of them are embracing it.

This isn’t just a trend. It’s a transformation. The United States is rapidly becoming a Renter Nation, and for multifamily investors, this presents a powerful opportunity.

Renters Are Choosing—Not Settling—for the Rental Lifestyle

A new survey from Cortland, a vertically integrated multifamily investment and management firm, reveals how deeply renters' attitudes have shifted. Conducted in partnership with Allison Performance + Intelligence, the study surveyed 1,000 adult renters across the U.S. The results speak volumes:

Only 32% of renters consider homeownership a part of their ideal life plan.
43% believe that renting has actually improved their quality of life.
The top reasons renters prefer leasing over owning include:
- Affordability (59%)
- Convenience of location (51%)
- Maintenance-free living (49%)
- Desire to avoid debt (40%)

Interestingly, previous homeowners were more likely than lifelong renters to say that renting improved their quality of life (52% vs. 38%). This suggests that even those who have experienced the benefits of ownership are recognizing the value of long-term renting.

Satisfaction with renting spans across generations:

84% of Gen Z and 81% of millennials are at least somewhat satisfied with renting.
71% of Gen X and Baby Boomers echo similar sentiment.

These numbers underscore a critical shift: for many Americans, renting isn’t a compromise—it’s a choice.

“Renter Nation” – Ken McElroy’s Forecast Becomes Reality

Longtime real estate investor and author Ken McElroy has been a vocal advocate of the “Renter Nation” thesis for years. According to McElroy, a perfect storm of economic, generational, and cultural forces has made renting not only more practical, but preferable.

Here are several of McElroy’s key insights:

Homeownership is becoming financially out of reach for much of the population due to home price inflation and stagnant wage growth.
Flexibility and freedom are top priorities for younger generations, who value experiences over material assets.
Maintenance, taxes, and unpredictable costs make owning more burdensome than ever.
Lifestyle preferences have shifted toward urban living, shared amenities, and community-focused developments.

McElroy believes this renter trend is not temporary—it’s structural and likely to accelerate.

Why Multifamily Real Estate Is Poised to Thrive

The rise of the Renter Nation has serious implications for investors—and most of them are positive for multifamily asset owners.

Here’s why multifamily real estate is positioned for long-term growth:

1. Persistent Demand

As homeownership becomes more elusive, the rental population will continue to grow—creating a consistent and expanding tenant base.

2. Income and Pricing Power

Well-located multifamily assets offer the ability to raise rents with demand, especially when paired with amenities that match renters' evolving expectations.

3. Demographic Tailwinds

Millennials and Gen Z—the two largest generational cohorts—are prime renters. Many will remain in rentals well into their 30s and 40s.

4. Recession Resilience

Multifamily properties have historically weathered economic downturns better than many asset classes. When times are tough, renting becomes the fallback—and often the preferred—option.

5. Institutional Validation

Blackstone, Starwood, and other large funds are betting big on multifamily. Their capital allocation is a clear indicator of where the market is headed.

6. Tax-Efficient Cash Flow

With benefits like depreciation, cost segregation, and leverage, multifamily offers superior tax-adjusted returns—making it a favorite among savvy high-net-worth investors.

Final Thoughts: The Future Belongs to Those Who See It Coming

The American housing landscape is changing—and fast. The romanticized image of the white picket fence is being replaced with walkable communities, modern amenities, and flexible leases. Renters want more, and they’re willing to pay for it.

This isn’t the end of the American Dream. It’s a reinvention of it.

For investors, understanding and acting on this shift is key. Multifamily real estate isn’t just a smart play—it’s becoming one of the most strategic positions you can take in today’s economy.

As we move deeper into the era of the Renter Nation, the question isn’t whether multifamily will thrive—it’s whether you’ll be positioned to capitalize on it.