A Glimpse Into the U.S. Multifamily Property Market

[Cathy Fontana]

If you’re a property owner, then you probably have a nagging desire for information about the market as well as tenant behavior. Let us help quench that thirst with a brief summary of the results of the National Survey of Renters survey, conducted by the Opinion Research Corporation.

• The total number of apartment buildings in the U.S. account for 48% of available rental space options
• Seventy-three percent of renters live in apartments, as opposed to the 27% that live in single-family properties
• Strong demand in 2013 is expected to drive up rental rates 4.6% across the nation (National Association of Realtors)
• Continued demand is expected to push rates up more than 4% each year in 2014 and 2015 (REIS)
• There is the potential for the creation of five to six million new renter households over the next ten years
• With a still-high number of foreclosures needing new owners, there is the potential for increased competitive pressure from investors who will use the opportunity to turn them into single-family rental properties
• When asked how long they expected to live in their current apartment, 56% of respondents said less than two years; 20% said three to five years; and 22% said more than 5 years
• Respondents were also asked their opinion of the management at their current property, to which 7% said poor; 24% said adequate; 37% said good; and 32% said exceptional
• While the common misconception is that financing is what is keeping renters from becoming homebuyers, the survey results actually show that the considerable factor is actually the rental lifestyle (40% enjoy being renters while 39% simply don’t want to be homeowners)
• And, when asked about the factors most important in determining whether to rent at a particular property, respondents said:
  • 71% = Good schools
  • 98% = Safe neighborhood   
  • 61% = Parks and playgrounds
  • 57% = Community center
  • 49% = Friendly neighborhood            

Source:  http://www.memphisinvest.com/national-renter-survey-2013/