Older, Wealthier Renters Drive Changes in Insurance Needs

As the demographic of the average American renter changes, so too do their insurance needs.

Renters today tend to be older with higher incomes and stronger credit profiles, and they often remain at the same address for several years, according to a recent report from TransUnion.

The median renter is now 40 years old with a $56K household income and a TransUnion proprietary credit score of 652, the report found. Insurers’ views of renters as less-than-desirable consumers are long outdated, said Patrick Foy, senior director for TransUnion’s insurance business.

“There’s been a shifting of homeowners to renters of some of these preferred customer profiles,” Foy said. “So, the overall home profile of renters has actually gotten better because traditionally those people would’ve bought homes by now, but they can’t afford homes so they’re being kind of forced on the sidelines.”

The average first-time home buyer in 2024 was 40 years old, a sizable increase from 2019 when the age was 33. Record-high home prices, elevated mortgage rates, rising non-mortgage costs and lagging income growth are likely to keep would-be home buyers as renters, the report said.

Renters remain at the same address for an average of 3.3 years, TransUnion found, signaling stability and low to moderate risk. The insurance products marketed to these long-term renters haven’t necessarily kept pace, Foy said.

“A lot of contents policies only insure up to maybe $50,000 or $100,000 of contents,” Foy said. “So, are insurance companies revisiting their insurance products that they offer those customers? Are they offering higher coverage amounts to target long-term renters? Are they cross-selling life insurance to those renters?”

With homeownership out of the picture for many older renters, insurers should be building out to bring those consumers along the lifetime value journey, Foy said. He drew a comparison with how car companies used to approach consumers in the 1970s and 80s. First came the entry level brand followed by the more premium brands.

“Renters are compiling more assets,” Foy said. “They may have two cars. They may have other vehicles like a boat or pleasure craft or snowmobiles or ATVs, those types of things. They also are going to have children. So those are all things that increase their insurance needs.”

Umbrella policies are a natural cross-sell to renters, as is small business coverage, Foy said.

Renters and homeowners shop insurance at a similar rate, but renters are more inclined to trade carriers. In the fourth quarter of 2025, 3.8% of renters switched carriers compared to 2.4% of homeowners, according to a J.D. Power report conducted in collaboration with TransUnion.

“These people may or may not become homeowners in the future, but what you know is if you build that relationship now at a foundational level and start getting lots of different insurance relationships with them, both across commercial life and renders, they’re going to think about you,” Foy said. “You’ll be front of mind when they transition to a home ownership situation if they do transition.”