Renters Staying in Cities and Suburbs Despite Pandemic, Turning Savings into Upgrades
- Renters are more likely to leave rural areas than urban ones. Three quarters (74%) of participants whose former home was in an urban area moved to an urban rental. Most suburbanites (71%) stayed in the suburbs. But a smaller majority (57%) of rural dwellers moved into a rental in a rural area.
- Among renters that moved from a previous rental, most are not saving money. Half (51%) of renters that moved from a previous rental report paying more than before. About a third (36%) report paying less. And 14% report paying the same.
Landlords may be feeling the crunch of a softening rental market, but enterprising young renters seem to be taking the opportunity to come back to the market and score a deal on a nicer apartment — even as the ongoing pandemic continues to influence their decisions.
After millions of young adults moved back home with their parents in the spring, Gen Z appears to be returning to the rental market, according to a recent Zillow survey of renters. In an April survey, just one-in-five (20%) Gen Z renters that moved said they moved from a home rented or owned by a family member or friend. During October and November, more than a third (34%) of Gen Z renters reported the same.
Three quarters (75%) of those renters that moved and are now paying less than before said finding a better deal on rent was a reason for their move, which makes some intuitive sense. But among renters paying more than before, close to half (44%) said that finding a better deal on rent was a reason they moved — they may be spending more, but clearly some may feel like they’re getting more for their dollar.
Compared to their older peers, younger renters were more likely to say that amenities including smart home capabilities, in-unit laundry and rooftop decks or gardens are all very or extremely important. As these younger renters continue to return to the housing market, landlords may want to consider adding these amenities instead of lowering rent. Offering concessions — sweeteners including free or discounted rent, parking and/or fees — could also be an effective alternative to rent reductions: Almost half (49%) of Gen Z renters that moved recently said they were motivated to do so because their new rental offered promotions or concessions.
Despite the pandemic and a rise in remote work, renters continue to stay close to cities and suburbs — 74% of those whose former home was in an urban area moved to another urban rental, and a similar share of suburbanites (71%) opted to stay in the suburbs. A notably smaller majority (57%) of rural renters chose to stay in a rural area. This trend is consistent with findings from the Zillow Consumer Housing Trends Report: Renters in urban and suburban markets have consistently stayed in those areas at higher rates than rural renters. This consistency may be because renters tend to skew younger, and disproportionately gravitate toward job centers, colleges and universities clustered in cities and suburbs.
A majority (54%) of renters also said a desire for more indoor space motivated their move, perhaps in response to more need for dedicated home office space and/or space for remote schooling for those with children. Renters that moved during the pandemic were more likely to say that being laid off from their job or otherwise involuntarily unemployed was a reason for their move (16%, compared to 10% of those that moved before the pandemic). Pandemic-era movers were also more likely to cite the desire for more safety from COVID-19 as a reason for moving compared to their pre-pandemic peers (24% versus 17%).
When asked which features and services make a rental safer, renters most often cited air filters being cleaned or installed (75%) and increased cleaning and sanitizing of common areas (75%). Their own personal outdoor space (69%) and mask mandates in common areas (64%) followed. As landlords, especially those in expensive markets, face stagnating (or even falling) rents, these safety precautions may prove effective ways to both attract new renters and keep existing tenants safe.
