Inside the Mindset of Today’s Renter

Zillow's 2025 Rental Consumer Housing Trends Report, based on a nationwide survey of over 36,000 renters, reveals key insights into the priorities of today’s tenants.

Affordability Tops the List
A staggering 95% of renters cite affordability as their top priority. With a median annual income of $51,300, well below the national median of $74,600, renters are highly cost-conscious. Price is the main factor influencing lease renewals and two of the top three reasons renters choose not to move, highlighting the critical role of affordability in tenant retention.

Homeownership on Hold
Fewer renters are considering buying homes. Only 58% of those who moved in 2024 considered purchasing, down from 64% in 2023. As a result, the average renter is getting older – the median age rose from 36 in 2000 to 42 in 2024. Rising home prices, interest rates and general cost-of-living concerns are keeping more Americans in the rental market.

Digital Expectations Are Rising
Technology is reshaping the rental experience. Nearly 80% of renters consider digital features essential in listings. One in five renters signed a lease without an in-person tour, 43% completed the lease approval process entirely online and online rent payments have surged from 36% to 65% over the past six years.

Looking Ahead
Based on the results of the survey, properties that balance affordability, integrate digital tools and cater to an aging renter population are best positioned for long-term success and stable occupancy.

Mitigating Rising Insurance Premiums

As extreme weather intensifies across the U.S., multifamily property owners are grappling with surging insurance premiums. Recent disasters including wildfires in California, hailstorms in Colorado and hurricanes in the Southeast have led to significant insurer losses and rate hikes. A recent survey by Yardi indicated a 28% rise in multifamily property insurance premiums in 2024.

In California, wildfires have grown more frequent and severe, prompting insurers to limit exposure. Many, including Farmers Insurance, AAA and CSAA, have reduced or ceased offering new policies in high-risk areas, citing increased losses. Their exit from the market has shrunk the pool of available coverage, leading to premium spikes and stricter policy terms, including mandatory fire prevention measures.

Colorado faces its own weather challenge: increasingly destructive hailstorms. In May 2024, the state experienced one of its most expensive hailstorms, causing nearly $2 billion in damage. The increasing frequency and severity of hailstorms have led to higher premiums and more stringent coverage terms and insurers are reassessing their risk exposure in the state, with some exiting the market altogether.

Many apartment owners have taken a proactive approach to reducing premiums, including investing in risk mitigation measures, restructuring and shopping insurance policies and diversifying the geography of their portfolios to balance exposure.  Pathfinder experienced a relatively nominal 9% year-over-year increase in 2025, after taking a number of steps to mitigate price rises. In Colorado, Pathfinder replaced the roofs on two properties with impact-resistant shingles, protecting the properties from future hail damage and reducing the level of premium increase at renewal.  Across our portfolio, we also took advantage of premium discounts related to our properties being “smoke-free” and require our tenants to hold renter’s insurance.

In the near-term, insurance costs in high-risk areas are expected to rise (with increasing volatility after major disasters) and proactive property owners will continue to seek ways to reduce their exposure.