America Is Becoming A Renter Nation. Are You Ready ?
Statistics show that more and more Americans are opting for renting over buying. In this blog post, we’ll break down the data trends by area and look into what this means for you as the property manager.
Americans who are renting their homes (as opposed to buying) are on the rise. Also increasing: the average U.S. apartment rent, according to a recent report by RentCafe. The study reveals that the average American rent reached $1,436 in April 2019. This means the average rent increased 3 percent — or $42 — year over year and has increased five dollars over the previous month’s (March 2019) average rent.
Rents are actually below the national average in most American cities. Of all the states in the Union, Texas shows the lowest month-over-month increases.
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Find out how to improve safety and reduce costs at your property
Our best-in-class emergency phone + monitoring solutions provide peace of mind and are backed by decades of expertiseLearn More
Markets with the highest rents bring no surprises. New York (specifically Manhattan), San Francisco and Washington D.C. demand the highest rental prices. Chicago is more moderate, but rents are increasing in Miami, Phoenix and Las Vegas. Los Angeles rents are also on the rise, with a dramatic $122 year-over-year increase. The one market where rent prices are actually declining, albeit slightly: Denver.
Occupancy rates remain high, according to a recent REIS report. American apartment vacancy rates remain flat (4.8 percent), only rising in 15 of the 79 major cities studied. Another surprise: net absorption dropped by a dramatic 21.6 percent.
Renting may prove to be better than buying, according to research by Attom Data. Its 2019 Rental Affordability Report reveals that home prices are outpacing wages in 80 percent of U.S. markets. Renting a three-bedroom property is more affordable than buying a median-priced home in 442 of 775 U.S. counties. That’s 59 percent!
The study goes on to show that, in 37 or 40 counties of one million or more (93 percent), renting is more affordable than buying. These markets include Los Angeles County (California); Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California.
What’s driving the rental housing market phenomenon? A still-recovering (but solid) economy, increased housing costs, increased immigration, and a growing demand from Millennials and Baby Boomers.
The Urban Institute projects that the demand for apartment rentals will continue to rise:
“Our analysis projects that from 2010 to 2030, the growth in rental households will exceed that of homeowners by 4 million, with an increase of 13 million rental households and 9 million homeowner households. That’s five renters for every three homeowners. Compared with the previous 20 years, the increase in homeowners was almost twice that of renters, even with the housing crash: 8.8 million new rental households and 16.1 million new homeowner households.” — from blog post on urban.org.
Cities with the youngest renters will have the most renters, according to ManageCasa.com.The most “youthful” states currently include Texas, Utah, and California.
CNBC reports that rental demand in the second quarter of 2019 jumped 11 percent from the same time a year ago, according to Real Page research. A survey from Freddie Mac shows that 82 percent of renters claim that renting is more affordable than owning. That’s increased an incredible 67 percent from the same time last year. The same survey found that perceptions of affordability of renting is shared across generations. Millennials (up 14 points to 75 percent), Generation Xers (up 11 points to 78 percent), and Baby Boomers (up eight points to 81 percent) all show definite increases in the perception that renting is more affordable than owning.
Freddie Mac also finds that 63 percent of renters continue to express their satisfaction with their rental experience. Drilling down deeper, 58 percent of renters believe that renting is a good choice for them now and do not have plans to buy a home at this time – up from 54 percent in February. In fact, 66 percent of renters plan to continue renting when they move again. That’s up 11 points from the last survey.
Are you ready for the increase in renters — and are you prepared to keep them?
Tenants love amenities, especially the ones that will give them peace of mind and help them in a pinch. Here’s one: providing onsite access to a trained and dedicated operator who can offer effective help in the event of an emergency. Kings III Emergency Communications is a 24/7/365, people-staffed, full-serviced emergency telephone monitoring service. Your tenant’s location is already fixed and known, programmed and ready for action. That means proper response starts more quickly and sends help to the right place without guesswork. Medical instruction is also available if needed. What you are showing your tenants: concern for their welfare and security, with a constant, dedicated commitment. What you can show yourself: reduced liability and cost.
Kings III all-inclusive services offers code-compliant emergency telephone equipment with installation, maintenance, and 24/7 monitoring, and dispatch services.
Find out more and increase tenant satisfaction by contacting us.
Elevator Communications and Data Connection Requirements: Properly Evaluating Security Risk, Reliability and Encumbrances
There’s a lot to consider when thinking about the new elevator emergency communication code requirements. Deciding to use your own network creates a long checklist and more work for you. Granting a third party vendor access to your network is an option but has risks. Here are a few things to consider when making your decision.
As part of Building Safety Month, we’re taking a look at some fundamental property crime statistics that all property managers should know, adding in some of our own crime prevention and crime response tips.
We have found as an emergency pool phone provider that there are multifamily communities unaware that their current pool phone service is actually using a deactivated cell phone. Depending on the authority having jurisdiction (AHJ), this often does not pass inspection for several reasons. This puts both property managers and their tenants at risk. Learn why.
Kings III equipment has been approved for the use of FirstNet, built by AT&T, which is a long-term evolution (LTE) network that gives first priority to first responders and other public safety personnel. Learn more here.
After a rigorous review process, Kings III’s emergency phone host control panel, the M90, is now FirstNet Ready™ and ready for use on FirstNet®, a public safety network. Learn items of note.
See how Kings III's emergency dispatch center was able to run as-usual during the mass Texas power outages and how we're prepared to do so in any outage.
Access easy, applicable tips for property managers when it comes to elevator entrapment follow-up and advice to give tenants stuck in an elevator.
Kings III is honored to be recognized by its employees and The Top Workplaces National Programs by earning the Top Workplaces USA 2021 reward in the 150-499 employees category, ranking in the top 5% for multiple culture drivers including clued-in employees, supportive managers, strong values, meaningful work, leaders-in-the-know, employee appreciation, and cross-team cooperation.
None of us want to deal with criminal activity, but in the case of property managers and building owners, who hold some liability for the safety of tenants and visitors, crime prevention is especially important. Here are six ways to help prevent crime on your property.
Kings III makes it easy as a single point-of-contact for all your emergency response needs. With expertise in line connectivity, compliance codes, equipment maintenance and safety protocol, we offer the total package.