Build-to-rent (BTR) residents are willing to move for a better deal in today’s increasingly expensive housing market. This is according to John Burns Research & Consulting’s 2024 Build-to-Rent Resident Survey, which found that BTR residents prefer renting but are sensitive to prices.
Forty-three percent of BTR residents said they would move out of their current home if they found a better deal or lower rent elsewhere, the survey found. Survey respondents also expressed a willingness to move to save money for a down payment on a home purchase or to escape a high cost-of-living market. However developers and operators can entice cost-conscious residents to stay with amenities and community features, the report found.
The survey, which incorporated 7,600 responses from residents across the United States, highlights a key shift in renter preferences compared with 2023. Thirty-six percent of BTR residents said they prefer renting their homes, up from 27% the year before. The preference for renting grew by 12 percentage points among both young singles and couples as well as young families, 10 percentage points for mature families and four percentage points for mature singles and couples.
Most BTR residents said they plan to stay in their current home for a median of three years, and fewer plan to buy a home next, the report found. Only 56% of survey respondents said they are considering purchasing a single-family home in 2024, compared with 63% in 2023. Uncertainty was also on the rise, with 16% saying they are unsure what their next living situation will be, up from 8% the year prior.
High mortgage rates are the biggest hurdle BTR residents cited when asked about buying a home. About half said mortgage rates would need to drop before they could buy a home, while 40% said they would need to save for a down payment first. Respondents also said home prices would need to come down before they would consider buying.
Continued high interest rates and home prices are likely to prompt BTR residents to rent longer than they expected, although the majority of respondents said their long-term plan remains to purchase a home.