Key Highlights
- According to data from Amherst, nearly 61% of US households remain vulnerable financially
- Renters, like homeowners, seeking more space away from the city
- Cheaper rent payment is #1 priority as tenants look to move
Think about it – apartment amenities are a big driver of rent prices. Since the outbreak of the COVID-19 pandemic, apartment amenities such as fitness centers, clubhouses, pools and offices have been closed to rental tenants. How long these amenities will be off limits is anyone’s guess as is how long they will remain accessible if there is another spike of coronavirus.
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Couple having to pay for amenities one can’t use with the reality that nearly 61% of US households feel financially vulnerable in spite of government relief programs such as stimulus checks, the paycheck protection program, etc., it’s no wonder that tenants are thinking carefully about whether or not to renew their leases.
The COVID-19 National Rental Survey administered by Amherst, a market research firm, found that only 26% of renters with leases expiring in the next six months are likely to renew their leases. Of those 26% likely to renew, only 18.7% are totally on board to renew their leases.
Amherst found that 35.9% of tenants are not likely to renew their leases and 38% are either somewhat likely or not sure whether they will renew their leases. The least likely tenants to renew their leases were those who pay more than $1,750/month.
Additionally, according to another recently released study, Assurant’s Multi-Family Housing Renters Perspective Study, 38% of renters will need rent relief help over the next 90 days. 42% of Assurant’s survey pool said they are uncertain about their rental stability going forward.
We know from the get-go that renters are more vulnerable economically than homeowners. This bears out in recent research compiled by SatisFacts. SatisFacts found that some 38.2% of renters lost at least 50% of their income during the month of April. 16.7% of renters lost 100% of their income.
Satisfacts broke down the data further. 24% of renters aged 18 to 24 years lost all of their income in April. 68.8% of renters aged 65 and older did not experience any decrease in income in April.
Satisfacts found that most renters are generally unaware of any government programs on the local, state or federal levels that offer rental assistance. (Why? Because there aren’t rental assistance programs.) On top of no rental assistance programs, Satisfacts found that only 34% of renters reported their building management company offered them any sort of negotiated relief payment plan to assist them with May’s rent.
Thanks to HousingWire.
Also read: Turn Your Rental Property into a Success, Is Remote Working the “Extension Cord” Buyers Need for Suburban Living?, Big Housing Story of Decade – The Growth of Renting
