New Survey Further Highlights Renters’ Affordability Concerns

Presented by StackSource

Propmodo Daily

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A new survey shows that affordability is the top concern for renters in 2024, reflecting the ongoing housing crisis and prompting discussions about potential policy interventions. Also, as inflation cools and Fed rate cuts loom, a new StackSource report offers key insights into distressed property opportunities.

Now let’s dig in!

New Survey Further Highlights Renters’ Affordability Concerns

A new Apartments.com survey reinforces what many in the multifamily sector may already know: Renters today are desperately searching for affordable housing. The website surveyed nearly 30,000 current and prospective renters to discover the top rental preferences of 2024, and affordability concerns were a persistent theme.

Twenty-eight percent of respondents said they were moving because of affordability, the top reason cited for moving. Eighty-nine percent said price was the most critical unit-specific information they searched for. When choosing from different features of a new residence, 78 percent of renters said price was a high priority.

Other survey questions offered helpful information, such as how renters find new apartments and what other factors go into choosing a new home. However, affordability dominated the survey responses, ranking much higher than other concerns like safety, security, and proximity to work or school.

This shouldn’t come as a surprise, but it further highlights how cost-burdened the average American renter is today. According to studies, half of U.S. renters spent more than 30 percent of their income on rent and utilities in 2022.

The affordability crisis has caused lawmakers to propose radical policy solutions. President Biden recently called on Congress to pass a form of rent control for about 20 million apartment units nationwide. Biden’s proposal would be a dramatic federal intervention in the housing market, and it faces long odds of passage.

The fact that a form of national rent control has even been proposed shows how deep the affordable housing crisis has gone. Modern amenities may be great in multifamily, but apartment owners can likely expect the price to be the most significant sticking point among renters for the foreseeable future.

PRESENTED BY STACKSOURCE
Inflation Cools, Rate Cuts Loom: CRE Insights

As inflation cools and the possibility of Fed rate cuts rises, investors are on the hunt for potential distressed property acquisitions. With insights from capital markets experts and detailed coverage of recent capital structures, this report offers valuable information for investors looking to capitalize on current opportunities. Stay ahead of the curve and make informed decisions with our in-depth exploration of market dynamics, economic indicators, and hot capital providers in the CRE sector.

Insider Insights

New punching bag
The amount of distressed apartment loans has now grown to $80 billion, surpassing the $66 billion worth of distressed office loans.

Zesty earnings
Zillow stock rose yesterday as the company reported revenue growth of 13 percent. This likely put investors at ease since the company recently announced a new CEO.

Propmodo Technology

The commercial real estate market is under pressure from high interest rates and stubborn property prices, making traditional loans difficult to secure. Creative financing options like preferred equity and technology platforms are becoming essential for connecting borrowers with lenders.

Check out this week’s Propmodo Technology focus on Lending with the support of our friends at StackSource.

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