Stung by the collapse in the home ownership market, consumers continue to move into rental housing. And landlords are taking advantage of the interest in rentals by raising the rent. As a result, more consumers now say they are looking around for new apartments which may give rise to more advertising in this market.
Census Bureau data shows that the home ownership rates in the U.S. dropped from 69.2% in 2004 to 65.9% in 2011. And some analysts, like those at Morgan Stanley, say the Census data doesn’t take looming foreclosures into account and calculated the real home ownership rate at closer to 59.2%. Many former homeowners have moved into rental housing which has driven up demand and rents. According to a Kingsley Associates release, property owners are “managing for value, not just retention.”
This situation is prompting renters to look for more affordable options. The latest Kingsley Associates survey finds that only 61.4% of current renters plan to renew their leases. This is a significant drop from last year when 65% of renters planned to renew. The increased turnover in the rental market means that property owners will need to advertise to attract new tenants. Consumers who plan to stay in a specific rental unit cite location (73.4%), community appearance (45.2%) and apartment features (44.5) as important. Those looking to change rental housing say rental rates (43%), community management (24.9%) and apartment features (24.3%) are driving their decisions.
Apartment building managers will be promoting these factors to keep units filled while the rental market remains hot.[Sources: Christie, Les. Home ownership hits lower level since 1965. Cnn.com. 5 Aug. 2011. Web. 6 Sept. 2011; Resident Renewal Intent Decline According to Kingsley. Kingsley Associates. 30 Aug. 2011. Web. 6 Sep. 2011]