Many property insurers have overlooked a key market of stable and profitable customers: aging renters, according to TransUnion’s latest Insurance Personal Lines Trends and Perspectives Report.

Renters policies generally yield lower premiums, averaging $171 annually, which can lead insurers to view them as less desirable, TransUnion said. But record-high home prices, elevated mortgage rates, rising non-mortgage costs and lagging income growth have reshaped the homeowner-renter landscape.

The median age of first-time homebuyers was 33 in 2019 but climbed to 40 by 2024, TransUnion reported. Now, more than half (53%) of renters are over 40 years old.

This segment can be a pipeline for high-potential customers as renters move into life stages involving families and greater financial investments, TransUnion said.

According to a TransUnion study, renters are increasingly older and have stronger credit profiles and higher incomes—with an estimated median household income of $56,000 and a credit score of 652.

Address tenure is also rising, the study found. The median renter has moved 1.67 times in the past seven years and maintains an average address tenure of 3.3 years, which TransUnion said signals stability.

Renters are remaining in rental housing longer as they build assets, personal investments, new ranges of interests, form families and become more complex risk profiles. These dynamics present a compelling opportunity for insurers to evolve product offerings and retention strategies to capture lifetime value as renters’ insurance needs grow and they either transition toward homeownership or remain life-time renters.

“Many consumers may have been priced out of home ownership, but they are still building lives that require the same comprehensive policies as older generations,” said Patrick Foy, senior director of strategic planning for TransUnion’s insurance business. “Insurers that tailor products and engagement to the needs of this consumer segment will gain a significant strategic advantage.”

This more established segment of renters also requires coverage that extends beyond what basic policies currently offer, including incremental protection for personal property, cyber protection, life insurance and supplementary liability coverage. Insurers that offer comprehensive coverage options are better positioned to capture higher-value business and improved customer loyalty, TransUnion said.