RCKRBX, a multifamily market intelligence platform, tapped into renters’ insights on remote work, unit configurations, and the economy in its inaugural National Renter Demand Indexing Study.
“As renter expectations continue to evolve and reshape the multifamily market, RCKRBX’s inaugural National Renter Demand Indexing study provides a unique and data-rich lens into what renters want today and tomorrow,” said CEO and co-founder Michael Broder. “Our research shows renter remand and preferences have shifted significantly post-pandemic, while existing supply and new construction/recent deliveries remain out of sync with what renters want and how these markets will continue to evolve.”
He added, “Developers and asset owners who deliver product more aligned to the new renter mindset are poised to achieve greater performance, resilience, and value.”
The survey, distributed by RCKRBX, reached 2,342 prospective renters. When it comes to the economy, respondents were split, with 43% saying it’s headed in the right direction and 39% saying it’s on the wrong track. However, economic conditions are the top rental driver nationwide for respondents at 41%, followed by lifestyle and job requirements, 30%; not yet settled or interested in buying a home yet, 25%; and the preference of renting over homeownership, 24%.
While only 17% of renters said they are committed to renewing their leases, 46% of prospective residents said they will increase their housing budgets to secure larger space with premium amenities compared with 20% who said they’ll decrease their budgets.
The survey found a significant number of respondents who are seeking larger units; however, it noted there’s a substantial misalignment between unit demand and supply. For example, there’s 52% unit demand for two-bedrooms or junior two-bedrooms versus 39% unit supply. For three-bedrooms, there’s 23% unit demand compared with 8% unit supply.
Additional key findings include:
- Almost half of renters surveyed are hybrid or remote workers, with those with more flexible work arrangements more likely to pay higher rent premiums. The Mid-Atlantic boasted the highest percentage of renters who are fully remote workers, 18%, while Texas and Southwest had the highest percentage of renters working fully in the office, 63%;
- 77% of renters identified as “utilitarian,” driven by pragmatic aspects of their unit or property, while 23% identified as “tastemakers,” driven by amenities and location. For utilitarian renters, safety and security as well as rent and monthly fees topped the criteria. Tastemakers favored pet-friendliness and amenities;
- 42% of respondents cited a one-year lease as the ideal term for their next rental home, followed by a two-year lease for 32%; and
- 31% of renters have lived in the current city or metro area for more than five years, while 24% have lived in their current residence for one to two years.
“For years, the industry has relied on backward-looking, lagging indicators—lease-up velocity, rent comps, absorption, job growth, etc.—to inform forward-looking decisions and strategy,” said chief research officer Kevin Hudak. “We make it possible to see the future, painting far more holistic, accurate, and predictive pictures of a project’s future, the populations who will live there, and the premiums they will pay, for what and why.”