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The script used to be simple: You would start out renting, save up money, then buy a house to nest in. But these days the reality is more complicated.

Between 6%+ mortgage rates and post-pandemic real estate values, many Americans have found themselves priced out of the homes they’d want to own. The cost of insurance, property taxes and upkeep are also deterrents, and can be especially daunting when the overall cost of living is already so high. Some people don’t even want to buy a house, choosing the flexibility and freedom to move over the wealth-building potential of owning.

In other words, whether by necessity or choice, the path to homeownership has changed. Renting has become a bigger part of many lives, with the typical age of a first-time homebuyer jumping to 40 from 33 in the past five years, according to the National Association of Realtors (NAR).

Some of the shift is straight math. Typical rents have eased up since a pandemic spike, but mortgage rates are still double what they were in most of 2020 and 2021.

But it’s also about wanting to be in safe neighborhoods that are near strong schools and good jobs. Among the 14 million U.S. households renting single-family homes and condos, 41% say they rent because they’re unable to buy in the same neighborhood, according to a survey taken by the Center for Generational Kinetics (CGK) in late 2025.

Then you have people who just aren’t interested in buying, according to Stephen Kates, a financial analyst at Bankrate. Like 40% of the tenants surveyed by CGK, they like the convenience of a rental and not having to worry about home repairs and surprise bills. They may also recognize that property prices aren’t expected to appreciate nearly as much as they did during the pandemic, Kates said.

“For some people, the growth of the stock market has shown them that renting and investing might be a better option, depending on your lifestyle,” he said.

In practice, renting for longer periods can change the calculus on living conditions, too. According to Zillow’s 2026 Housing Trends report, renters are increasingly looking for rentals based on comfort and quality-of-life amenities like high-speed internet, gyms, and common spaces.

So what?

At the end of the day, NAR surveys show that most renters still hope to buy a home, according to the trade group. But with an extended timeline, the challenge becomes finding ways to build wealth outside of real estate.

Steven Brown, a director at the Aspen Institute's Financial Security Program, said investing and saving for retirement become all the more important for renters, especially when an employer is matching 401(k) contributions.

If you’re not investing in a home, “keep clear about what your financial goals are and figure out a way to put your money into assets that accrue value,” he said.

Related Reading

Renting vs. Buying in Today’s Market: How to Decide (SoFi)

What US Cities Are Seeing Rental Prices Drop in 2026? (USA Today)

Financial Influencer Shares If Buying a Home Is a Waste of Money (TheStreet.com via MSN)

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