A new national survey revealed that rental demand will be more stable in the future for single-family homes rather than multifamily properties.
According to a survey by ORC International for Premier Property Management, one of every four single-family home tenants plan on staying in their current living situation five years or longer, while one of every five apartment dwellers will invest residing in their current housing units for the same time period.
The survey is based out of 1,006 adults.
One factor contributing to single-family stability is that 80% of renters living in these housing units are pleased with their property management. Conversely, only 63% of apartment renters considered their management to be good or excellent. Furthermore, one out of every four apartment residents rated their management as only adequate.
Even though many renters are satisfied with their current living status, over half (52%) of all survey respondents still anticipate becoming homeowners in the next five years, including 60% of single-family renters and 44% of apartments dwellers.
Despite difficulty for many prospective homeowners to obtain financing from lenders, this only ranks as the third reason why adults choose to be renters. Among the 43% of renters who do not plan to become homeowners in the next five years, 29% said they can’t get a mortgage. Additionally, 40% of those surveyed said they don’t want to buy a home because they enjoy renting or they simply just don’t want to be a homeowner.
Other survey highlights is that the majority of single-family renters make more money than multifamily occupants and most single-family tenants are older, usually aged between 35 and 44, while those living in apartments are 65 and older or in the 14 to 34 age group.
“With the emergence of the single-family rental option, American families have a new housing choice that brings them the aspects associated with owning their homes important to families such as living space, privacy, safe neighborhoods and the sense of community—without the cost and risks of homeownership,” said Chris Clothier, director of sales and marketing and partner of Memphis, Tenn.-based Premier Property Management.
“Single-family rentals can be found in virtually every community today and more and more families are choosing this as a temporary stop on the road to becoming homeowners or as a permanent solution to their housing needs.”