Young American renters are already making changes in response to inflation
Grubb Properties’ State of America’s Young Renters Survey Assesses Gen Z and Millennials’ Responses to Today’s Rental Market
CHARLOTTE, North Carolina, November 1, 2022 /PRNewswire/ — young american Renters are already making trade-offs to deal with inflation and rent hikes and considering other changes, according to a new survey from Grubb Properties, a leading vertically integrated commercial real estate company focused on multi-family rental housing.
At Grubb’s Survey of the State of Young American Renters surveyed 1,000 US renters between the ages of 22 and 35 to gauge their reaction to the difficult economic environment.
“young american tenants face an extremely tight housing market in terms of supply, which has made it much more difficult to find accessible apartments in desirable locations,” said Todd Williams, chief investment officer of Grubb. “Grubb Properties’ focus on essential housing, aimed at people earning 60% to 140% of the AMI, made us wonder how Gen Z and Millennial renters are adapting to this current economic reality. Our research shows that they act and trade – if necessary.”
More than half (51%) of young renters said they had experienced a rent increase in the past year, with an average increase of 30%. Among these tenants, less than one in ten (7%) said they had the resources to cover the increase without changing their lifestyle.
The remaining 93% are planning or have already taken action, including reducing additional purchases (54%), looking for a new job or side job (39%), and looking for a new place to rent or live (35%). %) Almost one in four (22%) said they would consider using their credit card to pay the rent. Around one in five (17%) would consider asking a friend or family member for help with rent, while 12% would consider adding a roommate to help cover the costs, and 7% would consider to sell their car.
If rents rose to the point that young tenants had to move out, they would consider more aggressive measures. Two in five (40%) say they would move to a smaller, cheaper apartment, while more than a third (36%) would pack up and move to a cheaper geographic area. One in five (19%) would consider returning home with family members.
Green, city life – and pets – always waiting for a call
Young tenants are not ready to compromise on their environmental priorities. More than four in five (82%) agreed that energy efficient and environmentally friendly buildings have at least some influence on their rental decision, with 40% saying they are extremely or very influential.
Similarly, 64% at least somewhat agree that proximity to public transport is important in the rental decision process. Three in four (75%) at least somewhat agree that it is important to live in an environment close to shops, restaurants and places of entertainment. This makes it even more critical to build more housing at affordable prices for these young tenants in urban and connected neighborhoods.
Another trade-off that young tenants are not ready to make is to give up their pets. Of the 74% of respondents who own a pet, most (58%) agreed that regardless of the increase in rent, they would never consider a building without pets.
Inflation tops the list of financial concerns and pushes young tenants to the polls
Inflation continues to be a major concern for young renters. When asked to rank their financial concerns, rising property prices were cited by 30% of respondents as their top financial concern, followed by rent increases (25%), lack of savings (20 %), job security (15%) and repaying student loans (10%).
These financial concerns also influence tenants’ decision to vote in November. Of the 68% who say they intend to vote in the medium term, 86% say their financial situation has at least some influence on their voting decision, and nearly half (49%) say it plays a important role in their decision. vote.
Young tenants report that higher rents also make it harder to find a new apartment. When asked if it would be easy or difficult to find an apartment in their price range, 64% said it would be at least somewhat difficult.
“Grubb Properties is focused on solving this housing shortage,” Williams said. “We are building new communities in some of the areas where supply is most limited, including Los Angeles, New Yorkthe bay area and washington d.c. . We believe that quality urban housing should be accessible to everyone.”
Background to the survey
The survey of the state of young American tenants of Grubb Properties was conducted by Wakefield Research (www.wakefieldresearch.com) among 1,000 young apartment renters (defined as renters aged 22-35), between September 16 and September 29, 2022, using an email invitation and an online survey. The data has been weighted to ensure an accurate representation of young apartment renters between the ages of 22 and 35. The results of any sample are subject to sampling variations. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted as part of this particular study, there is a 95 out of 100 chance that a survey result will not deviate, more or less, by more than 3.1 percentage points from the result that would have been obtained if interviews had been conducted with all the people in the universe represented by the sample.
Due to rounding, figures presented herein may not add up exactly to totals provided and percentages may not accurately reflect absolute figures.
About Grubb properties
Grubb Properties, founded in 1963, is a vertically integrated property fund manager focused on the Essential Housing space through its Link ApartmentsSM Mark. The company targets residents earning between 60% and 140% of local median income (AMI), directly addressing a growing crisis in essential housing, while providing residents with exceptional living spaces. Grubb Properties maintains a long-term outlook and its cautious and measured approach to real estate investing has generated resilient and impressive returns. Grubb Properties has received numerous sustainability designations and recognitions and undergoes annual ESG assessments through GRESB. For more information, visit www.grubbproperties.com.
CEO of Grubb Properties clay larva is the author of the book “Creating the Urban Dream: Tackling the Affordable Housing Crisis with Compassion”.
SOURCE Grubb Properties