About half (48%) of renters report feeling like renting is a choice and a similar percentage (42%) view renting as a long-term destination (5+ years)

Survey findings have important implications for multifamily investors, developers, and property managers going into 2025

Knightvest Capital, a vertically integrated multifamily investment firm, released today the results of the company’s second annual survey measuring multifamily renter sentiment. The survey provides insights into the rent-versus-buy decision, including the surprising shifts in attitude toward homeownership.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241119611093/en/

Knightvest Multifamily Renter Sentiment Report Identifies Long-Term Renting as the New Normal for 2025 (Graphic: Business Wire)

“Our survey shows a fundamental shift in how people think about homeownership. For many, renting is no longer a temporary stop but a preferred, long-term lifestyle choice that offers flexibility and community—something we expect to continue shaping the market in the coming years,” said David Moore, Knightvest founder and CEO. “These findings have important implications for the multifamily industry going into 2025: as people stay in apartments longer, investments in quality, service, and location are increasingly important.”

Key Takeaways:

People are choosing to rent

• About half (48%) of renters surveyed report choosing to rent (vs. feeling like they have to), and a similar percentage (42%) view renting as a long-term destination (5+ years).
• Almost half of renters (45%) do not view home ownership as a status symbol, and 33% reported feeling either ambivalent or uninterested in homeownership altogether (a slight increase from 2023), highlighting that attitudes towards home ownership in America continue to shift.
• Interestingly, 31% of respondents reported previously owning a home, highlighting how affordability isn’t always the main reason people choose to rent.

The high cost of homeownership is a main driver of long-term renting

• The top 3 reasons people rent are:
  • 1. The high cost of home ownership (63%)
    
    2. Lower maintenance and repair responsibilities (59%)
    
    3. Enhanced flexibility to relocate (34%)

• Millennials and Gen Z report similar annual incomes needed to afford a home
  • On average, Millennials reported needing a salary of $134K to afford the home they wanted, while Gen Z reported requiring a salary of $135K

Surprisingly, renters are not as sensitive to further decreases in interest rates in 2025

• Last year, nearly 70% reported they’d be more likely to purchase a home if interest rates dropped; this year, just 60% reported being more likely to purchase if interest rates dropped.

Proximity to work is increasingly important for renters as many return to office

• Half of renters reported working entirely from the office (50%).
  • A strong majority of these renters report that location and proximity to work impacts their housing preferences (85%).

Renters continue to value social interaction within their community

• About a quarter of renters (24%) reported feeling lonely at least weekly
  • Of those who report feeling lonely on a daily or weekly basis, about 64% value social interaction within their community, which is meaningfully higher than those who experience loneliness monthly or rarely/never

Daniel Ebner, President of Knightvest Residential, concluded: “As renters continue to prefer a long-term apartment community lifestyle choice rather than a steppingstone to homeownership, the multifamily market must continue to adapt not just by offering a premium place to live, but also in meeting the residents’ elevated expectations of service and an overall living environment. Investing in the improvement of residential properties and fostering a sense of community while providing exceptional service will be the keys to attracting and retaining renters that stay longer and expect more from their time with us.”

Survey background:

This poll was conducted between September 10 and September 30, 2024, among a group of more than 2,500 U.S. apartment renters. The survey was created by Knightvest and conducted through an online survey platform. Participation was voluntary, and respondents were not compensated.

About Knightvest Capital

Knightvest is an industry-leading multifamily investment and management firm known for creating communities of excellence and delivering dependable results that enable investors, employees, and residents to thrive. As a vertically integrated firm, Knightvest specializes in renovating and repositioning multifamily properties. Its unique approach is focused on setting a new standard in design-driven quality, executing with operational efficiency, and leading with a people-first culture. Since its founding in 2007, Knightvest has invested over $10 billion to acquire over 60,000 units across high-growth metro areas in Texas, Arizona, the Carolinas, and Florida to become one of the largest apartment owners in the United States. For more information, please visit Knightvestcapital.com and follow us on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241119611093/en/