2024 Buildium Renters Report

Introduction

The landscape of rental housing is evolving, with an increasing number of families opting for single-family rentals over traditional multifamily units. This shift is largely driven by the ongoing shortage of affordable starter homes, which compels many to consider renting as a long-term housing solution. Single-family rentals, known for their ability to meet the diverse needs of families, multigenerational households, and pet owners, offer the space and flexibility that modern renters seek. On average, residents in these rentals enjoy a longer tenure, staying for about 6.2 years, indicating a significant level of satisfaction and stability not always found in apartment living.

Who Lives in Single-Family Rentals?

Single-family rentals tend to house larger and more diverse household types compared to multifamily properties. These homes attract 32% multigenerational households and 28% couples with children, reflecting their appeal to those seeking more space and a community feel. In contrast, multifamily properties are more likely to house single individuals and roommates, with 31% one-person households and only 10% roommate situations.

Financial Health of Single-Family Renters

Despite the advantages of more space and community settings, single-family renters face their own set of financial challenges. While they generally earn slightly more than their multifamily counterparts, 55% have experienced rent increases since early 2023, which is less than the 69% in multifamily units. However, the financial strain is evident as only 35% of single-family renters can pay all their bills on time and in full, compared to 51% of multifamily renters.

Renters' Reasons for Renting

Financial constraints are the primary reason 49% of single-family renters haven't transitioned to homeownership. Many appreciate their current rental arrangements, citing location, flexibility, and amenities as key factors that meet their needs without the responsibilities of ownership.

What Renters Look For in a Property

Safety, quietness, and family-friendly environments top the list of desirable neighborhood characteristics for single-family renters. Proximity to stores, restaurants, and workplaces also plays a crucial role in their decision-making process. Property managers are advised to highlight these features in their listings to attract and retain tenants.

Renters' Technology Preferences and Contact Methods

A significant majority of single-family renters (89%) prefer handling rental activities online, from paying rent to managing maintenance requests. When it comes to communication, they favor emails and phone calls equally (45%), with texts also being a popular option (40%). This tech-savvy group values efficiency and convenience in their interactions with property management.

Conclusion

As the demand for single-family rentals continues to grow, property managers have opportunities to cater to this market by understanding and addressing the unique needs and preferences of these renters. By offering flexible payment options, ensuring effective communication, and maintaining properties that align with renters' lifestyle preferences, property managers can not only attract but also retain a satisfied tenant base in their single-family properties. This approach not only meets the immediate needs of renters but also builds a foundation for long-term occupancy and community stability.