Published by Zillow | December 7, 2021
Learn what renters care about most and how the growing affordability crisis affects their housing decisions.
Particularly relevant to real estate professionals in 2021 is a super-charged rental market in many parts of the nation. The year didn’t start that way. Rent prices slumped early in 2021 as many renters decamped to more affordable locations to work remotely during the pandemic. But by summer, rents rebounded as those renters returned to cities, with rents increasing an average of 15% YOY nationwide.
As the year comes to a close, affordability has been a key consideration for renters. Can renters pay higher rents and still save enough money to buy a house when they hit their mid-30s? How will the desire for affordability affect market demand? In what ways are landlords and property managers at risk in this market, and what can they do about it?
Zillow’s annual Consumer Housing Trends Report gives landlords, property managers and marketing managers a look at what has changed, delves into renters’ mindsets, probes their financial stressors, and reveals key factors that affect tenant decisions about where they live.
Highlights from this year’s report
- 50% of renters stayed in the same city. Reports of the death of cities have been exaggerated.
- The percentage of renters who said a gym was a must-have amenity in a multifamily rental fell 6% from pre-COVID times. The need for social distancing may have made certain shared spaces less popular.
- In 19 of the nation’s 50 largest metros, the typical renter is spending more than 30% of their monthly income on rent. A home is considered affordable if it consumes no more than 30% of a household’s income.
- Digital tools became more essential as going online became part of daily life. 52% of renters paid rent online and 35% signed leases digitally.
- Floor plans are becoming a must. 71% of renters agreed that they were more likely to view a home if the listing included a floor plan they liked. 64% agreed that a 3D home tour is more effective than static photos.
- 81% of renters say budget was a highly important factor — the highest among home and neighborhood characteristics when looking for a place to live.
- The number one reason renters move is because of a life event. 35% said a change in family size influenced their move, and 33% said they moved, at least in part, because of a new job.
- 29% of renters cited working remotely more often as an influence for their move.
Building relationships with tenants and understanding their needs and concerns will help landlords and property managers keep occupancy rates high. Download the report to get tips on how to provide renters what they’re looking for.
