The drop in mortgage rates during the pandemic impacted the housing market, while the effect of “tenant lock-in” grows in America’s most expensive cities, such as New York and Los Angeles, where giving up old leases below current market rates has become financially impossible.
Long-term renters—those who stay in the same unit for more than five years—make up 36% of renter households, according to Realtor.com’s 2024 report. These individuals are often adults with an average income of $48,500, living in small, stable homes.
In cities with high rents, moving is a financial burden, as giving up old leases can double monthly costs. Rising borrowing costs and rents have delayed homeownership plans, creating a taxing cycle for economic stability. The largest concentrations of long-term renters are found in high-end cities and some nearby, lower-priced areas.
New York tops the list with 53.3% of residents being long-term renters, followed by Los Angeles at 49.6%. Rent stabilization and control policies have helped many residents remain in leases below current market rates.
New York and Los Angeles highlight the significant gap between current rents and older leases. For example, a family in Brooklyn pays $1,800 monthly—a stark contrast to market rates approaching $2,894 in New York and $2,768 in Los Angeles—reflecting the clear “tenant lock-in” effect in today’s housing market.
