Recent data shows that renters are moving more than homeowners, but overall U.S. mobility has dipped to historic lows in 2025. Changing economic conditions and housing market dynamics are shaping how investors assess risk, opportunity, and demand.
What Happened
In 2025, a new report from the U.S. Census Bureau highlights a continued divergence: renters are moving more than homeowners, yet the overall mobility rate across the United States has dropped to one of its lowest points since recordkeeping began. According to the Census Bureau’s Annual Social and Economic Supplement (ASEC), only about 8.2% of Americans moved in the past year—a slight uptick for renters but a decline for homeowners, who recorded their lowest mobility rate since the 1940s. “What we’re seeing is a persistence of the pandemic-era trend: homeowners staying put and renters driving what’s left of household movement,” said Daniel Hale, chief economist at Realtor.com, referencing the data in a recent Bloomberg interview.
The gap between renter and homeowner mobility is widening. About 17% of renter households moved within the last 12 months, compared to less than 4% of homeowners. This shift has been attributed to rising mortgage rates—hovering around 6.8% in Q2 2025 (Federal Reserve)—and a scarcity of affordable home listings. For many owners, the so-called “lock-in effect” (reluctance to surrender pre-pandemic mortgage rates) has reduced incentives to relocate.
Why It Matters
The implications of renters moving more than homeowners extend beyond the real estate sector. Persistent low overall mobility has the potential to slow economic dynamism, reduce labor market flexibility, and dampen local spending in communities that rely on incoming residents. Historically, moving rates above 12% signaled robust economic churn and opportunity, but today’s subdued pace raises concerns.
Analysts see declining turnover among homeowners as both a symptom and cause of tight housing supply—a trend that can drive up rents and home prices. For long-term investment strategies, understanding mobility patterns is crucial. Markets previously buoyed by consistent influxes of new residents may now see muted demand growth, whereas rental-heavy regions could experience sharper swings in occupancy and pricing volatility.
Impact on Investors
For real estate investors and REITs, the surge in renter mobility offers mixed signals. On the one hand, apartment operators—such as Equity Residential (NYSE: EQR) and AvalonBay Communities (NYSE: AVB)—are experiencing higher tenant turnover, translating to increased operational costs and occasionally more vacancies. However, steady demand among new renters is sustaining occupancy levels and driving modest rent gains in select markets.
“Mobility rates are a double-edged sword for landlords,” noted Samantha Park, a senior housing strategist at Jones Lang LaSalle, in a note to clients. “More movement means greater potential for rent resets, but also higher make-ready expenses and challenges in tenant retention.” Homebuilders (like D.R. Horton, NYSE: DHI) might experience sluggish growth in owner-occupied new home sales, but strong rental demand could support the build-to-rent segment, offering new profit streams.
Additionally, indicators tracked by market analysis teams—such as the Case-Shiller Home Price Index and U.S. rental vacancy rates—help clarify risk for investors navigating this low-mobility landscape. It’s a time to scrutinize markets with outsized rental activity for both risk mitigation and capital deployment.
Expert Take
Analysts note that the divide in mobility between renters and homeowners underscores a structural challenge in U.S. housing. Market strategists suggest that unless mortgage rates trend lower or new inventory improves, investor focus may need to stay on rental-heavy markets and alternative real estate strategies.
The Bottom Line
Renters are moving more than homeowners in 2025, but historically low overall mobility is shaping the landscape for real estate investors. While rental demand may support some segments, the persistence of low turnover among owners signals continued inventory constraints and potential headwinds for economic flexibility. Investors should watch how mobility trends impact both housing supply and broader market health—and adapt portfolios accordingly.
Tags: housing market, rental mobility, real estate investing, U.S. mobility trends, homeowners vs renters.
