Home Is Where The Lease Is: The Rising Trend Of Apartment Living As Homeownership Takes A Back Seat

Most people who rent apartments choose to do so and don't care much about owning a home.

Nearly 60% of renters surveyed by real estate investment and management company Knightvest said they rent because they want to versus 41% who feel they have to rent because of the high cost of home ownership.

Among the reasons people rent are the high cost of home ownership, lower maintenance and repair responsibilities and greater flexibility to relocate.

"The rent-versus-buy decision is increasingly nuanced given this dynamic macroeconomic environment, and it's interesting to see the data support what we're hearing anecdotally from residents: If you create communities built on quality, service and care, then apartments can become sought-after destinations where residents thrive through multiple seasons of their lives," Knightvest Founder and CEO David Moore said.

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While 31% of renters reported feeling ambivalent or uninterested in owning a home, 29% reported previously owning a home — 71% of baby boomer renters previously owned a home and said their top reason for renting was lower maintenance and repair responsibilities. Gen Z respondents were more excited about owning a home than millennials (29% versus 25%).

High mortgage rates have delayed many people's homebuying decisions by at least a few years, with 74% of respondents saying they are waiting. Millennials report needing an annual salary of $139,000 to afford the home they want, and Gen Zers said they require a salary of $137,000.

Apartment communities offer social interaction, which 73% of respondents said is a valuable component of renting.

"As we head into 2024, this data underscores the enduring demand for apartments and reveals insights that will continue to shape the real estate landscape for years to come," Moore said.

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