A recent research study led by Harris Interactive® on behalf of the National Apartment Association found that the majority of apartment residents plan to continue renting for the next several years. Citing reasons ranging from low confidence in the recovery of the residential real estate market to general worries about the US economic climate, renters are more positive about the financial benefits of renting vs. owning than they were when the study was conducted last year.
The study’s findings support the current trends in apartment rental occupancy rates. According to the NAA, the year over year increase in apartment rental occupancy hit a historic high this year - a 1.5 million unit increase over Q4 2007. Here are some other findings from the Harris Interactive® research study:
- Consumer confidence is low - it’s going to get worse before it gets better: 80 percent of U.S. adults believe that the current housing market situation will worsen or stay the same over the next six months.
- Renters not eager to take a chance on home ownership anytime soon: 69 percent of renters said they plan to stay renters for up to five more years.
- Renters are staying put: 50 percent of renters who responded plan to continue renting their current residence for the next year and an additional 46 percent of non homeowners have no plans to buy a residence within the next year.
- Homeowners shy of making any quick changes: 72 percent of homeowners plan to remain in their current home over the next year.
- Renting seen as favorable to owning: 71 percent of adults feel that there are advantages to renting vs. owning in the current real estate market, 48 percent citing financial reasons (e.g. not being impacted by unpredictable housing values and mortgage rates) over more traditional reasons such as amenities packages (18 percent) or the flexibility of a short-term lease (32 percent).
- Economic fallout from the mortgage crisis beginning to affect even non-homeowners: 39 percent of adults feel that the financial security of renters and homeowners is equally affected by the current stage of the housing market – illustrating that an economic impact of the mortgage crisis is also being felt by non-homeowners.
With more renters staying in their rental homes for longer periods of time, it is more important than ever to focus on rental management, maintenance and establishing good manager/tenant relationships. Rentals.com Newsletters offer great property management tips for managers and owners. Click here to read the latest newsletters or sign up to have them sent directly to your email account.