Renters Are Less Likely To Move In This Market

Renters
Renters are more likely to stay put in the current market.

For renters, the question of “to move or not to move” has become a much weightier decision in today’s housing market. Contrary to past trends, renters are showing signs of settling in for the long haul, with a recent Redfin report indicating that one in six renters (roughly 16.6%) have stayed in their current home for ten years or more. This marks a significant increase from 2012, where only 13.9% of renters boasted such longevity.

What is driving this shift for renters?

  • Soaring Rents: Rents have been climbing steadily across the country, making moving to a new place a daunting financial prospect. For many renters, the cost of breaking their lease and securing a new rental property, potentially at a significantly higher rate, simply isn’t feasible.
  • Buying Out of Reach: The dream of homeownership is becoming increasingly difficult to achieve. Rising home prices coupled with higher mortgage rates are pushing homeownership out of reach for many renters.
  • Stability in Uncertain Times: The global pandemic and economic uncertainty have caused many people to prioritize stability. Familiar surroundings and a predictable rent payment can provide much-needed peace of mind during turbulent times.
  • The Rise of Remote Work: The shift to remote work arrangements has lessened the tie between location and employment. Renters no longer need to be geographically close to their workplaces, giving them the freedom to stay put in their current apartments, even if they change jobs.

However, this trend of renters staying put has both positive and negative implications. On the positive side, it can provide renters with a sense of stability and security. Landlords may also benefit from a more stable tenant base.

On the downside, a decrease in renter mobility can tighten vacancy rates, making it even harder for new renters to find affordable housing.

Summary

If you’re a renter, carefully consider your options before making a move. Factor in the increasing cost of rent and the potential difficulty of finding a new place.

Landlords can benefit by fostering positive relationships with their tenants and offering incentives for long-term leases.

The current housing market presents a unique situation for those leasing. While traditionally mobile, renters are increasingly choosing to stay put due to a combination of economic and social factors. This trend has both advantages and disadvantages, and it will be interesting to see how it unfolds in the coming years.

Are you thinking about buying an income-producing property? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your smartphone or tablet.

By natasha moore

REALTOR® with Live South Florida Realty, Inc.