Why do people choose to rent? In some cases, it may be because they have not decided to make a city their permanent home. In others, it may be because the cost of homeownership is a barrier. For many individuals, however, renting is now not the default but the preferred option – especially for those at risk of loneliness.
“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, founder and CEO of Knightvest Capital, a multifamily investment firm that commissioned a survey of more than 2,500 renters in September 2024. It was conducted through an online survey platform.
The survey results, he added, have important implications for the multifamily sector.
Of the renters surveyed, 48% said they chose to rent, and 42% considered renting a long-term proposition of five years or more.
Some 63% cited the high cost of owning a home as the main reason to rent. On average, both millennials and GenZers noted the need to have an average annual income of around $134,000 to buy a house. However, 45% of renters did not view home ownership as a status symbol, and one-third were either ambivalent or uninterested in taking it on. Indeed, almost one in three had previously owned a home.
Interestingly, the percentage of renters who said lower interest rates would make them more likely to buy a home dropped from 70% last year to 60% this year.
Other factors that encouraged people to rent were the lower maintenance and repair responsibilities and the flexibility it gave them to relocate.
Return-to-work policies also influence renters’ decisions. Half of them surveyed work entirely from the office, and 85% of them said location and proximity to work impacted their housing preferences.
The survey also uncovered an important reason why the nature of rental communities can be so important to renters. A quarter of those surveyed reported feeling lonely, at least weekly. And among those who do experience loneliness, 64% value social interaction within their community – significantly more than those who rarely experience it.
“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,” said Knightvest president Daniel Ebner.