While the housing market landscape continues to transform, a new report from Zillow focuses on renters who moved within the last year. The 2021 Consumer Housing Trends Report (CHTR) sheds light on characteristics that define renters’ housing considerations and future residence plans. As more renters consider buying a home, professionals can consider some of the following highlights of the research in targeting these consumers.
Majority of Renters Consider Buying During their Rental Search, Especially Millennials
To date in 2021, a majority of renters said they considered buying when they were looking for a home to rent: 56% said they at least thought about it, similar to 55% in 2020 and higher than 49% in 2019 and 46% in 2018. Millennial renters were the most likely (65%) to say they considered buying, significantly higher than the oldest generations of renters; only a third of Baby Boomer and Silent Generation renters (32%) said they at least thought about buying during the rental search.
Almost Two-Thirds of Recent Renters Likely to Move Within the Next 3 Years
The pandemic has not significantly altered renters’ plans to consider moving: 70% say they are considering it within the next 3 years. About a quarter (24%) say they are currently considering moving, and approximately one in five (21%) say they’re considering moving in the next year. Another quarter (24%) say they’re considering it within the next two to three years. One in seven (14%) say they might consider moving, but not within the next 3 years. And the remaining 17% say they have no plans to move.
Overall, 71% of renters say that a life event influenced their decision to move to a new rental: The most common reason renters cite for moving is a change in their household or family size (35%), followed by a new job or job transfer (33%) and working remotely more often (29%). About 39% say that a rent increase impacted their decision.
Renters Often Stay Local, but Change Neighborhoods
When asked how far renters moved in the last year, the largest share (39%) said they stayed in the same city, but changed neighborhoods. About one in ten (11%) reported staying in the same neighborhood. Altogether, about 68% of renters stayed within the same metro area and the majority of renters (60%) said they ended up in the area they initially considered. Others ended up close (19%) or somewhat close (12%) to where they initially considered, while the remaining 8% ended up very far from their original area.
As interest rates continue to stay at a near all-time low, and more people are working remotely, now might be a great time to encourage renters to pursue home ownership. Since many renters consider buying a home – particularly Millennials – a thorough home inspection from Top Flight Home Inspections, LLC can help them be confident in their decision and investment. Contact TFHI today to schedule a home inspection at 614-203-9217 or visit us online to schedule an inspection: www.tfhomeinspections.com.