The South* may have a reputation for affordable living, but for many renters, keeping up with housing costs is becoming an obstacle to saving for the future.
A new report released Oct. 19 by Entrata, a property management software company, examines how Americans are navigating financial pressures, saving money and redefining success. Entrata, founded in 2003, provides software for property owners and managers, serving more than 3 million residents across 20,000 multifamily communities worldwide.
Virginia Love, Entrata’s industry principal and an Atlanta resident, said the findings challenge the perception that Southern renters necessarily enjoy lower housing costs.
“There’s always this perceived, …[because] you live in Atlanta, I live in Atlanta. There’s this perceived notion that everything’s cheaper in the South, that the South is a lot more affordable,” Love said.
Among Southern respondents who reported not saving, 59 percent identified rent or housing costs as a barrier, compared with 40 percent in the Midwest. The survey included 762 Southern renters, representing 35 percent of respondents nationwide.
“Housing affordability is relative to income, not simply the monthly rent payment,” Love said. “Even in the markets where rents may be lower than the national average, the housing cost can consume a significant share of that household income.”
Financial pressures extend beyond housing. Nationally, among renters who reported not saving, 71 percent cited high living costs, 67 percent identified insufficient income and 40 percent pointed to debt payments.
Despite these challenges, 34 percent of Southern renters reported saving regularly, compared with 32 percent in the Midwest, 35 percent in the West and 36 percent in the Northeast.
Love said the South’s combination of financial challenges and optimism about the future stood out.
“It highlights how financial optimism, you know, and affordability challenges can exist side by side,” Love said.
Among Southern renters who reported saving, 57 percent prioritized emergency funds, compared with 64 percent in the Midwest. Southern renters were also less likely to save for retirement, at 27 percent, compared with 34 percent in the Midwest.
Nationally, renters are adjusting their spending habits to manage financial pressures. Fifty-three percent reported eating out less, 43 percent are shopping sales more frequently and 40 percent are switching to cheaper brands.
“Renters are making deliberate adjustments to stretch their budgets,” Love said.
The findings also challenge assumptions about younger generations. Generation Z, represented by adults ages 18 to 29 in the survey, reported the highest rate of regular saving at 48 percent, compared with 34 percent of renters overall.
“This is not a figure it out generation. This is very much a planning generation,” Love said.
Although younger renters are prioritizing savings, homeownership remains an important aspiration. Sixty-six percent of Gen Z respondents considered owning a home part of the American dream, while 37 percent associated investments with financial success, compared with 25 percent who associated success with purchasing a home.
Across all generations, 61 percent expressed a desire to own a home, although 24 percent said they considered it unattainable. Another 22 percent reported having no desire to own.
The report also found that 32 percent of renters would use an unexpected $10,000 to pay down debt, compared with 9 percent who would put it toward purchasing a home.
Love said these priorities reflect a broader shift in how renters approach financial stability, with many seeking to reduce obligations before pursuing major purchases.
For property managers, Love emphasized the importance of transparent pricing, flexible payment options and understanding residents’ financial circumstances.
She also cautioned against treating homeownership as the only measure of housing success.
“While home ownership might be some people’s dreams, it’s not everybody’s dream,” Love said.
For Southern renters balancing housing costs with their financial goals, the findings suggest that success may be less about owning a home and more about having the financial freedom to choose what comes next.
*In the Entrata data the South includes Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia, as well as Washington, D.C.
