Tag Archives: renters

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

U.S. Renters Spent $504 Billion on Housing in 2018

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– Renters spent more on housing than ever before in 2018, even with fewer renter households

– Renters paid $12.6 billion more in rent this year than they did in 2017 – which is about a 2.6 percent increase.

– There are about 43.2 million households renting in the United States, a slight decline from 2017.

– More than 10 percent ($55.6 billion) of all rent collected in the United States came from renters living in the New York City metro area.

– Rents are currently rising the fastest in Orlando and Las Vegas, and renters in each of those cities spent about $4.4 billion on rent this year.

SAN FRANCISCO, Dec. 21, 2018 (PRNewswire) U.S. households spent a record amount on rent in 2018 despite a decrease in the number of households who rent their home, according to a new HotPads® analysis. Overall, the U.S. spent $504.4 billion on rent in 2018 – more than the entire GDP of Belgium ($494.7 billion)(i) and three times the current net worth of Amazon CEO Jeff Bezos ($124 billion)(ii).

Renters spent $12.6 billion more paying their rent in 2018 than they did in 2017. The current median rent is $1,475, up 3 percent from a year ago. Throughout 2018, rents rose about 3 percent year over year – continuing a gradual slowdown in rent appreciation that began in mid-2016.

However, the number of renter households in the U.S. decreased slightly in 2018. There were about 43.2 million renter households across the country this year – nearly 100,000 fewer than in 2017.

A gradual slowdown in rent appreciation has allowed renters looking to purchase homes greater ability to save for a down payment in recent years, and millennials – the generation comprising half of today’s renters — are also buying homes more than any other generation(iii). With more eligible buyers on the market, the number of renter households has decreased slightly over the past year.

“After several years of a booming economy, more millennials became financially able to become home owners in 2018,” said Joshua Clark, economist at HotPads. “However, rent affordability continues to be a challenge, as those who still rent are paying even higher prices now than they were a year ago. If interest rates continue rising in 2019, more would-be homebuyers may decide to continue renting, which could put additional pressure on rent prices. Fortunately for renters, the housing market is also cooling nationwide, signaling that the entire market may be leveling off and making it easier for renters to keep up with housing expenses.”

Of the 50 largest metro areas in the U.S., renters in the New York City metro area spent the most on rent this year – a total of $55.6 billion. However, rent growth in the New York metro also slowed in 2018. Rents in the New York City metro area are rising just 1 percent annually now, compared to 1.8 percent annually at this time last year.

While rent appreciation has been steady or slowed in many metro areas, some markets in the Southeast and Southwest are still seeing significant price gains. Rents are appreciating the fastest in Orlando, Las Vegas and Phoenix, at a rate more than twice as fast as the national median. Renters in Orlando and Las Vegas spent about $4.4 billion on rent in 2018, while renters in Phoenix spent about $7.5 billion.

HotPads is a Zillow® Group-owned apartment and home search platform for renters in urban areas across the United States. For more information on the U.S. rental market, visit HotPads.com.

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HotPads is an efficient rental search platform for urban areas across the United States, with features designed for competitive markets such as map-based search, real-time notifications and detailed information on landlords and property managers that help renters spend less time searching and more time feeling excited about their next home.

Launched in 2005, HotPads is based in San Francisco and is owned and operated by Zillow Group, Inc. (NASDAQ: Z and ZG).

HotPads is a registered trademark of Zillow, Inc.

(i) U.S. Bureau of Economic Analysis, 2017

(ii) As of December 20, 2018. https://www.bloomberg.com/billionaires/profiles/jeffrey-p-bezos/

(iii) Millennials are the largest single group of home renters (50 percent) and home buyers (42 percent), according to the 2018 Zillow Group Report on Consumer Housing Trends.

(iv) Projected through the end of 2018



Renters Spend Nearly Six and a Half Years Saving for a Down Payment

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– Renters in expensive California markets can expect to spend more than two decades saving for a 20 percent down payment on the median valued home

– Rising rents and home values extend the amount of time it takes to save up for a down payment on a home – it takes a typical U.S. renter six years to save enough to put 20 percent down.

– Renters in 13 of the country’s 35 largest markets can expect to spend more than 10 years saving enough money to put 20 percent down on the typical home.

– The typical U.S. renter spends 34 percent of their income on housing.

San Francisco, CA – July 13, 2018 (PRNewswire) Renters can expect to spend nearly six and a half years saving for a 20 percent down payment on a home, according to a new HotPads® analysis.(i)

Hotpods Logo

The median home value in the U.S. is $216,000, which means a 20 percent down payment would be $43,200. If a renter making the median income saves 20 percent of their income each month – as financial experts recommend — they would have enough for a down payment in 77 months, which is nearly six and a half years.

Rising rental costs make it even harder for renters to save for a down payment. Nationally, the median rent is $1,480 per month, up 2.5 percent from a year ago. Experts recommend spending no more than 30 percent of income on housing expenses, but the typical U.S. renter spends 34 percent of their income on housing.

In the country’s most expensive housing markets like San Jose, Los Angeles and San Diego, it could take renters 22 years to save up a 20 percent down payment on the median home, assuming they can afford to set aside 20 percent of their income each month. Currently, renters in these markets are spending more than 55 percent of their income on rent.

Meanwhile, it will take a typical renter in Pittsburgh, Cleveland, Detroit and Indianapolis less than four and a half years to save for a 20 percent down payment. Renters in these markets spend 30 percent or less of their income on housing, making it easier for them to save.

Rising rents aren’t the only thing keeping renters out of the housing market. With home values continuously on the rise, saving for a 20 percent down payment becomes more difficult every month. U.S. home values rose 8 percent over the past year and are forecasted to rise another 6.5 percent over the next 12 months.(ii)

“Aspiring first-time buyers have to balance their current housing needs with their dreams of homeownership before they can think about saving for the future,” said Joshua Clark, economist at HotPads. “Home prices are outpacing incomes in many of the country’s largest markets, which makes saving for a home more difficult. On top of that, the current generation of first-time buyers is dealing with unprecedented levels of student debt, making the down payment a major factor keeping young renters out of the housing market even though many young people say they have ambitions to buy. While some high earners may manage to save more than the recommended 20 percent of their income, or may have the good fortune of windfalls such as family assistance, inheritance, or large bonuses, most young adults struggle to save. Sustained increases in home values and rents suggest that lower down payments may become more popular as first-time buyers continue to be pinched on both sides of the market.”

While most home buyers expect to put 20 percent down on a home, buyers can qualify for loans that require a much smaller down payment. In 2017, about 29 percent of first-time buyers put down between 3 and 9 percent on their home purchase.(iii) Renters who save 20 percent of their monthly income can expect to save enough for a 3.5 percent down payment – the minimum required amount for most FHA loans — on the median home in a year and two months.

HotPads is a Zillow® Group-owned apartment and home search platform for renters in urban areas across the United States. For more information on the U.S. rental market, visit HotPads.com.

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HotPads

HotPads is an efficient rental search platform for urban areas across the United States, with features designed for competitive markets such as map-based search, real-time notifications and detailed information on landlords and property managers that help renters spend less time searching and more time feeling excited about their next home.

Launched in 2005, HotPads is based in San Francisco and is owned and operated by Zillow Group, Inc. (NASDAQ: Z and ZG).

HotPads is a registered trademark of Zillow, Inc.

(i) HotPads analyzed median rents, median home values and median incomes to determine how long renters can expect to spend saving for a down payment. This analysis assumes renters save 20 percent of the median monthly income each month for a down payment.

(ii) Zillow Real Estate Market Reports, May 2018

(iii) Zillow Group Report on Consumer Housing Trends, 2017. https://www.zillow.com/report/2017/buyers/money-financing/

(iv) Zillow Real Estate Market Reports, May 2018

(v) Income data from the U.S. Census Bureau