Renters represent a growing segment of the housing scene in the U.S. as homeownership erodes – now at the lowest level since 1967 at 63.4 percent. That means that more than one-third of all households are renters. So how do renters find the place and make decisions where to rent?
While a plethora of research has focused on the search process via the internet and cutting edge technologies by prospective homebuyers, little has been done on the growing segment of renters. Until now. For Rent Media Solutions™ (FRMS) has written a white paper on the rental search process by consumers identifying themselves as current or prospective renters. The survey concentrated on their use of mobile, video and social media. In total, they surveyed more than 12,000 consumers in June of 2015. The findings are truly insightful. And not at all different from homebuyers.
Renters Come in All Age Groups
The survey found that no one single age group dominates renters. The following table details respondent age demographics. While more than one-half were under the age of 35, almost one in seven were at least 55 years old.
Internet Search for a Dwelling is as Prevalent Among Renters as Homebuyers
The 2014 Profile of Home Buyers and Sellers by the National Association of Realtors® (NAR) found that 92 percent of buyers utilized the Internet in their search for a home. The same is true among renters, with 90 percent of respondents in the FRMS Survey using Internet Listing Services in the search for a rental unit. Close too was the use of Mobile Applications, with 48 percent of renters using them compared to an almost identical 50 percent of homebuyers in the November 2014 NAR study.
Print Media Still Has a Place
Just as Realtors still buy newspaper and listing booklet advertisements, renters also pay attention to paper media. One in six of the renter survey respondents reported using print media (17 percent). In the NAR survey, 20 percent reported looking at newspaper ads for homes and 14 percent used a home book or magazine.
Photographs
Missouri is known as the Show Me State, and there must be some of Missouri in most of us since 80 percent of the renter survey respondents relied on photographs as the main resource when apartment shopping – whether online or in print. In the NAR Home Buyer Profile, 83 percent responded that online photographs were Very Useful.
Ratings and Reviews Are Very Important to Renters
Ratings and Reviews were categorized as one of the most important tools in the apartment search process by 76 percent of the respondents. In another 2015 study by SatisFacts Research, a similar 67 percent of those replying indicated they trusted ratings and reviews.
Other Findings
- 69 percent viewed location as a major factor in the decision making process – online maps become very important
- Video is a key tool used by 26 percent of prospective renters overall, and by 40 percent of mobile users
- 36 percent of 18 to 34 year olds viewed a video-sharing site when researching apartments
- 43 percent of renters were Likely or Very Likely to interact with the apartment community via social media
- While word-of-mouth is important, ratings and reviews are more important. More than 40 percent indicated that they evaluate a property based on word-of-mouth, but almost twice as many (76 percent) rely on ratings and reviews.
To read the intro article on the white paper and get access to downloading the complete report click http://pressroom.forrent.com/marketing-eflash-updates/69-of-renters-say-location-is-a-decision-maker-according-to-newest-white-paper-from-for-rent-media-solutions
There is a striking similarity between those searching for renting or buying in their search process for housing. No doubt the Internet, social media — and in the instance of renters, online reviews and ratings — are key to prospective tenants and will continue to dominate the search process.
My forecast is that the next evolution in online renting will also offer comparably priced listings for sale spanning the entire housing solution at one-stop. So when you click a specific priced rental unit, the site will show you what you can buy for the same monthly payment – assuming you can qualify for the loan and down payment.
Email back and share your search process for a rental.
Ted