Homeowners vs. renters statistics 2021

Renting is on the rise in the United States, but there are still more homeowners nationwide than renters. We broke down the facts, figures, and statistics to see how homeownership compares to renting in the U.S.

Kara McGinley

By

Kara McGinley

Kara McGinley

Property and Casualty Insurance Expert

Kara McGinley is an insurance editor at Policygenius, specializing in home, auto, and renters insurance. She's been writing about insurance since 2019, and her work and insights have been referenced in Kiplinger and WRAL.com.

Updated January 4, 2021|1 min read

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More U.S. households are currently renters than at any point since 1965, according to the Pew Research Center. There are definite benefits to renting a home, for example, you don’t need to take out a mortgage or worry about property taxes or building maintenance. In fact, according to a Pew Research Center survey, a third of today’s renters say they are renting by choice, not circumstances. That said, the same survey found that seven-in-ten renters say they hope to own a home one day.

Owning a home has its advantages as well, it’s a long term investment that helps you build equity, it can give you a form of stability, and can at times result in tax benefits. But how does renting compare to homeownership in the U.S.? We broke down the facts, figures, and statistics surrounding renting and home owning across the country.

Homeowners vs. renters: By the numbers

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Homeowners insurance vs. renters insurance: Understanding the differences

Both homeowners insurance and renters insurance provide financial protection for policyholders. One of the main differences between the two is who the policy protects: renters insurance protects tenants who rent their homes, and homeowners insurance protects people who own their homes. And while homeowners insurance protects the actual structure of the home (as well as the belongings inside it), renters insurance only protects a renter’s personal property, not the physical home that they rent.

Below are the basic components of renters insurance and homeowners insurance:

  • Renters insurance: Protection for renters who rent their home. Renters insurance protects a tenant’s personal property, but not the actual home itself. A standard policy contains personal property protection, loss of use coverage, and personal liability coverage.

  • Homeowners insurance: Protection for people who own their home. Homeowners insurance protects the physical structure of a home and the homeowner’s belongings. A standard policy contains dwelling coverage, other structures coverage, personal property coverage, loss of use coverage, personal liability coverage, and medical payments coverage.

Learn more about the differences between renters insurance and homeowners insurance here.

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