Single-Family Rental Lease Lengths, Service Models Shift as Stability Trumps Turnover

Lease terms are stretching longer and service models are evolving in the U.S. single-family rental market (SFR), reflecting changing market forces, tenant expectations, investor strategies and operational realities. 

In 2025, the typical apartment lease for new tenants hit a record 12.8 months, according to data from RealPage. Meanwhile, national single-family rent growth has settled near 1.4 percent, just below the long-term average, according to the Cotality Single-Family Rental Index. These trends point to a quieter transformation in the SFR market, as the sector moves from high-turnover, 12-month leases toward longer-term occupancy, enhanced tenant experience, and more sophisticated asset management.

While much commentary in real estate focuses on rent increases or spikes in supply, the operational backbone of single-family rentals is changing. The average new lease length across the rental market reached close to 13 months in early 2025, representing the highest typical term on record for that data set. Although this statistic reflects the broader rental market rather than exclusively single-family homes, it indicates a growing preference among households for longer commitments. 

At the same time, single-family homes continue to rent at a premium compared with multifamily apartments. Rent for single-family homes was about 20 percent higher than apartment rents as of January 2025, according to data from Zillow. This premium increases the operational pressure on landlords and managers, who generally must justify the higher rent with quality resident experience, amenities or housing stability.

Several factors appear to be driving this shift toward longer lease terms. Affordability and homeownership barriers play a key role. As potential homeowners delay or abandon purchase plans, single-family rentals increasingly fill the gap. Only about 34 percent of renters in 2025 believe they will ever own a home, down from nearly 53 percent in 2019, according to a paper from the Federal Reserve Bank of St. Louis. This trend points to a growing number of households that may seek longer rental horizons, making leases of 14, 15, or even 18 months more common and more valuable to both tenants and landlords.

Operational costs are another factor. Turnover — through cleaning, refurbishing, marketing and re-leasing — remains expensive, and landlords often prefer longer-term occupancy to reduce these recurring expenses. About 85 percent of landlords increased rents in 2024, with 31 percent raising rents by 6 percent to 10 percent, partly in response to rising operational costs, according to a 2025 survey from Baselane. Longer leases not only reduce the frequency of re-leasing but also provide more predictable cash flows.

Tenant expectations have also evolved. Renters today are looking for more than a simple four-wall unit. Particularly in single-family housing, amenities such as yards, garages and quality neighborhoods have become differentiators. Operators are increasingly incorporating renewal incentives, service offerings and amenity upgrades to meet tenant expectations, while also improving retention.

Even as headline rent growth has moderated, these shifts are reshaping the competitive landscape. National rent growth for single-family homes was 2.9 percent year-over-year as of June 2025, slightly below the pre-pandemic average of 3.4 percent, according to industry data. With rents moderating, landlords are increasingly focusing on lease-term flexibility, tenant retention and service as critical levers of competitiveness.

These changes carry implications for the broader market. For landlords and operators, the shift increasingly rewards retention over frequent turnover. Leasing decisions now incorporate strategies for renewals, resident experience, and longer-term lease pricing models. Investors benefit from reduced vacancy risk, more predictable cash flows, and potentially higher valuations in a market where rapid rent growth is no longer assured. Regional dynamics are also important. Some metros continue to see increased rental supply, giving tenants more bargaining power, while less-dense suburbs and legacy SFR markets benefit from longer resident tenure and stable demand.

Markets such as Phoenix and Austin, for example, are showing signs of increased rental supply, which is providing tenants with greater bargaining power. In Phoenix, the year‑over‑year rent for three‑bedroom single‑family rentals was essentially flat in August 2025. Conversely, less‑dense suburban corridors and long‑established SFR markets in the Midwest and Northeast are seeing tighter inventory and longer resident tenure.

As the SFR sector continues to mature, innovation in lease terms and service differentiation is becoming a defining competitive factor. While headline rent increases may no longer dominate coverage, the underlying economics of retaining residents longer, reducing turnover costs, and providing value-driven living have become central to the health and growth of the SFR market.

Michael Lucarelli is the founder and CEO of rental software provider RentSpree.