• Boomerang tenants are tenants who return to rent a property they used to rent in the past.
• Many boomerang tenants are the result of broader economic, social, and even generational shifts in both lifestyle and work.
• The rise of flexibility in the workplace and the generational outlook of younger generations have made boomerang tenancy rise in prominence in recent years.
• Boomerang tenants contribute to housing market stability as well, making the local housing and rental market predictable.

A boomerang tenant is someone who, after previously living and moving out of a rental property, decides to return and rent again from the same landlord or property manager after some time.

This interim period can range from a few months to several years, reflecting various personal, economic, or lifestyle changes.

This trend is particularly notable in the context of residential real estate, where tenants may leave a rental property for various reasons—such as purchasing a home, relocating for work, or seeking a change in living circumstances—only to return to the same property or landlord at a later date.

The more boomerang tenants there are, the broader the economic and social shifts[1]. It highlights the growing need for flexible housing solutions in an increasingly dynamic and unpredictable economic landscape. It also raises questions about the future of homeownership and its role in the American Dream.

RELATED: The American Dream Dilemma: The Unaffordability of Homeownership

Boomerang tenants aren’t entirely new, but the trend has gained prominence recently due to a mix of social and economic issues.

Historically, tenants would often rent the same property for extended periods or move permanently to homeownership. In fact, the U.S. Bureau of Labor Statistics found that the most common lease periods for residential properties in the U.S. is 12 months[2].

However, economic instability, such as job market fluctuations and housing market crashes, can influence former homeowners to re-enter the rental market.

The volatility of housing markets also plays a role in increasing the number of boomerang tenants. In particular, younger generations struggle with mortgage accessibility, often leading to a reversion to renting. The National Association of Realtors noted that escalating prices and affordability issues are forcing many potential buyers, especially first-timers, out of the market[3].

Tangentially, the modern lifestyle, which increasingly values flexibility and minimal commitments in the workplace[4], makes some people find more solace in returning to their “roots” or areas they’re familiar with, eschewing urbanization altogether.

Demographics of Boomerang Tenants

The types of boomerang tenants are diverse, reflecting the various reasons for their return.

• Economic boomerangs: Those who initially leave to purchase a home but return to renting due to economic factors, like a shortage of housing supply.
• Career boomerangs: Individuals who move for job-related reasons, such as a relocation or a new job opportunity, and later return to their previous location.
• Lifestyle boomerangs: Tenants who leave for personal reasons, such as a change in family status or lifestyle preferences, and later decide to return to a familiar living environment.
• Student boomerangs: College students or recent graduates who return to rent in the same area after a brief period of absence, often influenced by the familiarity and convenience of the location.

This trend has broad implications for the rental market, especially for:

Landlords and Property Managers

The boomerang tenant trend presents both challenges and opportunities for landlords and property managers.

On the one hand, these tenants are often known quantities—their payment history and behavior as renters are already documented, reducing the risks associated with new tenants.

On the other hand, accommodating boomerang tenants may require more flexible leasing agreements and potentially more frequent tenant turnovers.

As a principle, boomerang tenants are still tenants. Since they provide a pool of potential renters in a rental market, they help make that market more predictable and therefore stable[5]. This underscores the importance of good landlord-tenant relationships.

Tenants

For tenants, boomerang renting can offer flexibility and a sense of familiarity. Returning to a previous rental can be less stressful than starting anew elsewhere, especially if the tenant had a positive experience. However, it may also indicate instability or uncertainty in their long-term housing plans.

Legal and Ethical Considerations

Landlords and property managers must navigate various legal and ethical considerations when dealing with boomerang tenants. These include fair housing laws, lease agreements, and the ethical treatment of tenants. It’s crucial to maintain consistency in how tenants are treated, regardless of their history with the property.

The real estate industry is responding to these trends by becoming more flexible in property management and handling rental agreements. This flexibility might include an overhaul of investment decisions and a new marketing approach. New technologies, like AI in property management, are also making it easier to cater to the needs of boomerang tenants[6].

The trend of boomerang tenancy is a volatile subject, influenced mainly by economic changes.

When the economy is unstable or in a recession, buying a home gets harder for many people[7]. This situation leads to more people renting, and as a result, there’s an increase in boomerang tenancy. Conversely, when the economy is doing well, with good options for mortgages and people earning more, renting becomes less appealing as more people can afford to buy homes.

There are also less influential, but still significant drivers of boomerang tenancy:

Generational Outlook

Younger generations prefer having the option to move around and not being tied down to owning a home. Millennials and Gen Z cohorts are more likely to rent, move out, and then rent again, impacting the trend of boomerang tenancy as they become a bigger part of the housing market[8].

This pseudo-itinerant lifestyle also dovetails with the growing trend of remote work, especially so-called “digital nomads”[9]. These workers now have the freedom to work from anywhere and may choose to move according to their needs but return to familiar rentals when they want stability or familiarity.

Finally, the aging population in developing and advanced economies makes for an increasing number of retirees[10]. Some retirees sell their homes and move to rentals, only to return to homeownership or a previous rental community for various reasons.

Urbanization

Cities continue to draw people in because of job opportunities, cultural experiences, and social life. This attraction leads to a pattern where people move out of the city but return later, especially as cities keep evolving and offering more.

In fact, there are more people now living in cities than there were almost two decades ago[11]. This trend is expected to increase in the coming years.

On the other hand, in cities with high living costs, individuals may oscillate between renting and homeownership as their financial circumstances change.

1. How do boomerang tenants affect rental prices?

Boomerang tenants can influence rental prices in various ways. In areas with high demand, landlords might be able to charge higher rents, knowing that tenants might return due to a lack of alternatives. Conversely, in markets with more options, landlords might need to offer competitive pricing to attract boomerang tenants.

2. Are there specific legal protections for boomerang tenants?

Generally, boomerang tenants are subject to the same legal protections and obligations as any other tenants. However, their previous history with a landlord might impact lease negotiations or terms.

3. Can landlords refuse to rent to boomerang tenants?

Landlords can decide whom to rent to, but their decisions must comply with fair housing laws, especially the Fair Housing Act. Refusing to rent to someone solely because they are a boomerang tenant could be considered discriminatory if it’s based on protected characteristics[12].