NEW YORK – Single-family home renters have become a powerful force in the residential market, significantly shaping the post-pandemic landscape. Unlike apartment dwellers, house renters prioritize features typically associated with homeownership — privacy, space, a yard. However, a recent Point2 survey revealed that pet accommodations are now a bigger priority than making room for a growing family.
Ownership is not in the cards for more and more would-be buyers. That much is clear from rising home prices, mortgage rates, and limited availability. For many, the numbers simply don’t add up, which turns most of them to renting as the next-best thing. And, with homeownership increasingly out of reach, single-family rentals are now serving as the entry point for those who can no longer afford to buy, redefining the concept of a “starter home”.
Understanding the preferences of single-family home renters has become crucial for property managers, developers, and investors. According to IPUMS Census data, single-family renter households have risen from 14 million in 2020 to more than 14.2 million last year. To meet demand, build-to-rent options are stepping in to fill the gap. Last year, completions hit a record 27,500, and 2024 is on track to surpass that, with 45,400 single-family rentals currently under construction.
To find out what makes house renters tick, Point2 conducted a survey of over 1,500 respondents interested in house renting. It turns out that privacy and space are the top contenders when it comes to choosing a house over an apartment, with house size being the second-most influential factor, just behind rent. Another aspect house renters prioritize? Their pets.
House renters mostly satisfied with their rental, but half would still buy
House renters exhibit a duality in their preferences: they value the flexibility and convenience of renting while also appreciating the stability that comes with longer-term stays. This balance allows them to understand the trade-offs between renting and owning, which in turn shapes preferences for what matters most in a home.
Out of the 1,509 survey participants, 1,020 are house renters. Notably, while most are satisfied with their current rental, 27% expressed a neutral stance — feeling neither particularly satisfied nor disappointed.
This neutral stance could suggest they are weighing the flexibility of renting against the desire for a more personalized space or the long-term investment of homeownership.
Nevertheless, despite the overall satisfaction, the allure of the American Dream of owning a house remains strong: Nearly 52% of renters expressed interest in buying a house.
The second-most popular housing plan is staying the course: Almost 19% are committed to continue renting, appreciating the balance of flexibility and stability that renting provides. This type of commitment ends up influencing the upgrades they desire, as renters may seek to enhance their current living spaces if not invested in purchasing a home.
When asked what they would customize in their rental, many house renters went for an upgraded kitchen. Next up — and almost equally divided — were additional space (both storage and living spaces, like a finished basement or a converted attic) and improved energy efficiency.
Beyond functionality, renters might be swayed by having standout spaces that can create a sense of individuality, luxury or enhanced comfort. These distinct areas can be the deciding factor when choosing between otherwise similar rental houses. For instance, around one-third of all survey participants would love a sunroom or a roof deck; at the same time, about 15% would go for either a workshop-craft room type of space or a greenhouse.
Despite the desire for upgrades, house renters are nothing if not realistic about their options. When it comes to home size, in particular, the ideal house rental type is closer to reality than fantasy.
Notably, most single-family home renters who took the survey (65.6%) live in a detached house with 3 bedrooms and 2 bathrooms. Interestingly, when asked about the ideal house size and layout, the most popular combination was renting the same property type with the same number of bedrooms and bathrooms. This suggests that, for many house renters, their current living arrangements align closely with their ideal: They may want upgrades, but in terms of space, they are largely satisfied.
Included utilities might be worth a hike in rent — more so than a swimming pool
One of the biggest perks of renting is having less responsibility — particularly with all of the maintenance that comes with living in a house.
To that end, the survey revealed that more than 41% of respondents are not too bothered about not being able to renovate or modify a single-family rental the way they’d like. Additionally, another 4% actually prefer that their contract include no modifications allowed because it eases responsibility and leads to less hassle overall on the renter’s part.
Plus, according to more than 78% of respondents, decorating is all it takes to create a cozy feel and make a rental feel like home. Another thing that does the trick for more than one-third of them? Making the most of the kitchen.
That said, essential kitchen appliances — like a refrigerator, stove or dishwasher — are must-haves for the majority of renters (As a matter of fact, 11% believe that upgraded kitchen appliances could even be reason enough for a rent increase). But, as far as must-haves go, nothing beats heating and AC, as 68% of survey participants consider them non-negotiables.
This sense of practicality extends to what might justify an increase in rent. More than 45% said utilities included would do it, while less than 22% reported that a pool would be worth it.
Focus on furry family members: Pet accommodations outrank family growth as reason for renting a house
Pets and the policies that affect them are a deciding factor in choosing a rental home. More than 13% of respondents said that their main reason for renting a single-family home, as opposed to an apartment, has to do with better pet accommodations. Might not seem like a lot, but it’s more than those who said their main reason was to accommodate a growing family (11.3%).
Furthermore, more than 68% of survey participants are pet owners and consider the furry family member part of the household. Additionally, for more than 23%, a pet policy is crucial in deciding on a place, while close to 6% believe that pet-friendliness would even justify an increase in rent. (For 44-to-59-year-olds, this would actually be more justifiable than security upgrades).
Focus on young renters: Gen Z wants some eco-friendliness in their rental house; a yoga studio would be nice, too…
A quick breakdown of the Gen Z renters (18-to-27-year-olds) who took the survey reveals that more than 28% rent with their significant other, followed by nearly 23% who rent alone — the second-highest share of solo renters after seniors older than 60.
Granted, privacy is a top priority for house renters of all ages, but Gen Z manages to stand out: More than one-third of young renters of this generation (33.3%) cited privacy as their main reason for choosing a house over an apartment — a larger share than any other generation. Next, 28% of Gen Z renters listed the need for more space as their top driver.
Gen Z also sets itself apart in its focus on sustainability. When asked about the role of eco-friendliness in their rental choice, over 44% said that it’s an important influencing factor, with an additional 7.3% stating that it’s extremely important.
Whereas, for older generations, a sunroom or a workshop might make them switch to a different rental, Gen Z is built differently. The unconventional space that would make young people choose one rental over another would be a home gym or a yoga studio. The generational divide becomes even clearer as having a workshop is trumped by having a music studio or a theater room.
By zeroing in on what matters most to single-family renters — like pet-friendly policies, privacy, space, and sustainability — property managers and developers can tap into fresh opportunities and reshape the rental landscape. And, as more turn to renting rather than buying, this shift may turn out to be more than just a trend. It’s a chance to redefine the rental experience and meet the demands of a growing and evolving renter base.
Methodology
- The study is based on a survey among 1,509 United States respondents. The survey ran between July 31st and August 31st, 2024.
- The analysis included both participants who are already renting a house as well as participants who aim to rent a house. Respondents were able to choose multiple options for various questions regarding overall preferences and priorities in a rental house, while questions tailored for specificity required single answers. For instance, participants were asked to select their age group in order to better identify generational differences in house preferences.
Source: Point2Home.com
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