Tag Archives: covid-19

Renters on the Move: Entrata Survey Studies Renter Behaviors During a Landmark Year

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Renters report plans to move, a desire for month-to-month payments, COVID-19’s impact and more

Lehi, UT – May 20, 2021 (PRNewswire) – Entrata, the multifamily industry’s most comprehensive property management software provider, today announced a new study, which reveals that 22% of American renters moved to a larger apartment with more space in the last year,  with a further 56% planning post-pandemic moves. The survey gives a unique view into the rental market during an industry and world-shifting year.

“2020 was a life changing year for people, industries and businesses across the globe,” said Chase Harrington, Entrata’s president and chief operating officer. “Our survey of U.S. renters shows that many moved to larger spaces to accommodate work from home needs, moved back to hometowns and some even moved to the city to take advantage of lower rental rates. We’re seeing a shift in the industry as renters look for more flexible leasing options and think differently about apartment amenities.”

Key findings from the survey include:

To Rent, or To Buy?

Many people’s plans changed in 2020, and renters were no exception. Out of American renters:

  • Nearly 22% moved to a larger apartment with more space in the last 12 months, possibly to accommodate pandemic-imposed work-from-home needs.
  • A good section of the younger generation went back to their roots with 14% of Gen Z reporting that they moved back in with parents this last year.

The main reasons Americans stated for currently renting instead of owning are cost related, with the inability to afford a down payment on a home (39%) and home ownership being too expensive (33%).

Where and Why Renters are Moving

The pandemic has pushed renters in two distinct directions, either to the city or to the suburbs. Some are still planning their moves and others have already made the change.

The top reasons for renters to move during the last year were:

  • The cost of rent (27%)
  • Needing more space (24%)
  • Needing a change of pace (18%)
  • The COVID-19 pandemic (16%)

Of those who’ve moved in the last year, one-third (33%) said their move this past year is short-term, with 61% stating that it will last more than a year. That said, younger generations are more likely to say that their move during the last 12 months was short-term compared to older generations.

COVID-19’s Impact

More than half (54%) of renters who moved in the last year say they experienced moving difficulties due to COVID-19, with some of the top hardships including:

  • Difficulty finding rental units in their price range (24%)
  • Family and friends being unavailable to help with moving (20%)
  • Inability to tour rental units (18%)

Because of the pandemic, nearly half (47%) of American renters switched to month-to-month payments. Of those, 42% say the pandemic affected their rental rate, and for many (34%), it increased their rate. Out of all American renters, nearly one in five (19%) say their interest in month-to-month rent payments has increased in the last year, however 53% of them say they aren’t willing to pay more in rent in order to have month-to-month payments.

How Amenities Have Changed

According to renters, 61% of rental properties on-site amenities have been closed or are now strictly regulated due to COVID-19. With many amenities going away or being limited, only 14% of renters say their rent was decreased because of those restrictions. However, 79% of those whose on-site amenities have been closed or regulated due to the pandemic think that their rent should have dropped.

Twelve percent of American renters say that compared to before COVID-19, on-site amenities make or break rental properties for them now, while 45% say that they still want good amenities but will ultimately choose a property based on location or price.

To read the full survey summary, click here. For more information about Entrata and its technology, please visit www.entrata.com.

ABOUT THE RESEARCH
Entrata conducted this research using an online survey prepared by Method Research and distributed by Qualtrics among n=1,000 adults in the United States who currently rent and have moved in the last 3 years. The sample was balanced across age, gender and geography. Data was collected from March 9 to March 29, 2021. 

ABOUT ENTRATA
Founded in 2003, Entrata® is the only comprehensive property management software provider with a single-login, open-access Platform as a Service (PaaS) system. Offering a wide variety of online tools including websites, mobile apps, payments, lease signing, accounting, and resident management, Entrata® PaaS currently serves more than 20,000 apartment communities nationwide. Entrata’s open API and superior selection of third-party integrations offer management companies the freedom to choose the technology and software that best fit their needs. For more information, go to www.entrata.com.

SOURCE Entrata

Consumer Confidence in Housing Falls Again as COVID-19 Pandemic Surges

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‘Good Time to Buy’ and ‘Good Time to Sell’ Indicators Decline Due to Reported Economic Concerns

WA – Jan. 7, 2021 (PRNewswire) – The Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index® (HPSI) fell for the second straight month in December to 74.0, a 6.0 point decline from November. Five of the six HPSI components decreased month over month, and consumers reported a substantially more pessimistic view of homebuying and home-selling conditions, which drove the relatively large monthly change. Year over year, the HPSI is down 17.7 points.

“The HPSI declined for the second consecutive month and fell to its lowest level since May 2020, as consumers adjusted to the worsening COVID-19 conditions of the first few weeks of December – the survey collection period,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Both the ‘Good Time to Sell’ and ‘Good Time to Buy’ components fell significantly, with respondents overwhelmingly noting the unfavourability of economic conditions. In particular, the sell-side component fell for the first time since April and by 18 points, reversing most of the increases of the past three months and implying to us that, at least temporarily, potential home sellers might wait to list their homes. If so, this could have the effect of perpetuating already-tight inventory levels and supporting additional (albeit lesser) home price growth, which could contribute to a further moderating of home sales.”

Home Purchase Sentiment Index – Component Highlights

Fannie Mae’s Home Purchase Sentiment Index (HPSI) fell in December by 6.0 points to 74.0. The HPSI is down 17.7 points compared to the same time last year. Read the full research report for additional information.

  • Good/Bad Time to Buy: The percentage of respondents who say it is a good time to buy a home decreased from 57% to 52%, while the percentage who say it is a bad time to buy increased from 35% to 39%. As a result, the net share of Americans who say it is a good time to buy decreased 9 percentage points month over month.
  • Good/Bad Time to Sell: The percentage of respondents who say it is a good time to sell a home decreased from 59% to 50%, while the percentage who say it’s a bad time to sell increased from 33% to 42%. As a result, the net share of those who say it is a good time to sell decreased 18 percentage points month over month.
  • Home Price Expectations: The percentage of respondents who say home prices will go up in the next 12 months remained the same at 41%, while the percentage who say home prices will go down increased from 13% to 16%. The share who think home prices will stay the same decreased from 35% to 34%. As a result, the net share of Americans who say home prices will go up decreased 3 percentage points month over month.
  • Mortgage Rate Expectations: The percentage of respondents who say mortgage rates will go down in the next 12 months remained the same at 8%, while the percentage who expect mortgage rates to go up also remained unchanged at 43%. The share who think mortgage rates will stay the same decreased from 40% to 39%. As a result, the net share of Americans who say mortgage rates will go down over the next 12 months remained unchanged month over month.
  • Job Concerns: The percentage of respondents who say they are not concerned about losing their job in the next 12 months decreased from 76% to 75%, while the percentage who say they are concerned increased from 24% to 25%. As a result, the net share of Americans who say they are not concerned about losing their job decreased 2 percentage points month over month.
  • Household Income: The percentage of respondents who say their household income is significantly higher than it was 12 months ago decreased from 24% to 20%, while the percentage who say their household income is significantly lower remained unchanged at 18%. The percentage who say their household income is about the same increased from 57% to 61%. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago decreased 4 percentage points month over month.

Realtor.com COVID-19 Housing Market Update

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To keep up with the rapid changes COVID-19 is having on the economy and housing market, the realtor.com® economics team provides a weekly video update on the relevant real estate and economic information you need to know to navigate the housing market in these challenging times.

This week, Senior Economist George Ratiu talks about the IMF’s updated global economic forecast for 2020, as well as the Bureau of Economic Analysis’s latest update to GDP. He also mentions the rebound in durable goods orders and the latest jobless claims numbers, which highlight lingering concerns about the economic recovery.

George offers an overview of this week’s housing data, including realtor.com® trends on new listings, sourced from the Weekly Housing Trends View. He also highlights new research from Economic Data Analyst Nicolas Bedo, pointing to a rebound in the luxury real estate segment. George talks about the continuing decline in inventory and drop in existing home sales, as well as the acceleration in asking prices. At the same time, consumers’ shifting preferences toward suburban markets and smaller towns are driving demand for new homes. He wraps up his remarks by mentioning that mortgage rates moved sideways this week, while mortgage applications declined.