R
enting a single-family home has become increasingly expensive, outpacing the rise in apartment rents. According to Zillow's data, median rent prices for single-family homes have surged 41% since pre-pandemic levels, while multi-family units have seen a more modest 26% increase.

    A surge in apartment construction has helped keep multi-family rents in check, but single-family home supply remains tight due to a lack of new construction and high mortgage rates. This has driven demand even higher, making it harder for renters who want the space of a house but can't afford to buy one.

    The price gap between renting a house versus an apartment is now wider than ever since tracking began in 2015. In January, single-family home rent averaged $2,179 (up 4.4% from last year), while multi-family rent averaged $1,820 (up 2.7% from last year). This difference of about $359 per month makes it a tough decision for renters who want the space of a house but can't afford to buy one.

    Demographics also play a significant role in this trend. Millennials, born between 1981 and 1996, are staying in the rental market longer as homeownership becomes increasingly unaffordable. First-time homebuyers now average 38 years old, an all-time high, according to the National Association of Realtors.

    Experts advise renters looking at single-family homes to focus on strong credit, stable income, and low debt-to-income ratios to stay competitive in today's tough market. Landlords scrutinize financials more aggressively for standalone homes than they do for apartments, so keeping your credit history clean and debt manageable is key. If homeownership is still the long-term goal, experts suggest staying on top of credit reports and making sure all bills are paid on time.