appfolio webinar: zillow’s secrets to understanding renters

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Zillow’s Secrets to Understanding Renters


AppFolio

• Property management and accounting

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• Prospect / guest card tracking

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• Website

• Online applications & leases

• Resident Screening

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Rental markets across the country are experiencing pressure

from increased demand…


Sensational examples include, but are not limited to,

burgeoning tech markets


Why? Supply and Demand


Homeownership rate has returned to 1990s levels…


…and almost all household formation has come from renters

over the past several years


…and a growing share of these renters are renting SFRs


Many of these new renters may have lost their own homes to

foreclosure during the crisis

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Supply of entry level homes for potential buyer is constrained by

negative equity…


..and by the slow pace of SFR construction


Who is the SFR renter?

Relative to SFR owners they are:• younger• less affluent• more likely to have experienced a major demographic event• tend to live in denser communities• more likely to be a racial/ethnic minority.


The median annual income of full-time employed SFR renters is

significantly lower than SFR owners…


The SFR renter is more likely to be in a transition period…


…more likely to have children…


…and to raise the children as a single parent at that.


Income, unsurprisingly, has implications for the way we live


Emphasize affordable nearby day care if you can.


Transportation choice: Partially a function of location

choice, partially determined by one’s means


These differences are important. They underlie the motivations

people have for moving.


When Zillow asked hundreds of current renters why they don’t

own, they said…

Income affordability (53%):· Because I can’t afford the maintenance, taxes and monthly payments of homeownership (18%)· Because I can’t qualify for a home loan (16%)· Because I don’t have a down payment saved for a home (13%)· I receive government assistance with my rent (6%)

Lifestyle/preferences (26%):· I simply prefer to rent (20%)· I could afford to buy a home, but not the size or style or location that I would want (4%)· I like the amenities in my rental community/complex (2%)

Uncertainty (15%):· I’m not certain how long I will live here, and/or I’m only living here for a short time (14%)· I recently sold my home and have not yet found another to buy (1%)

Other: 4%


Competing with the starter home


About Zillow Real Estate Research

Zillow Home Value Index

Zillow Rent Index

Zillow Home Value Forecast

Negative equity

Sale prices

VISIT ZILLOW RESEARCH:

www.zillow.com/research

In-depth research, monthly reports and interactive visuals

…AND MANY MORE!

Rental prices

Home sales

$ value/square foot

Price-to-income ratios

Affordability

REAL ESTATE METRICS:


Questions?


The income gap between SFR owners and SFR renters has tightened since 2006


SFR rentals tend to be older properties


Monthly housing costs have increased for renters

appfolio webinar: zillow’s secrets to understanding renters

Real Estate

percent of sfr renters

sfr owners

attached sfr

percent of apartment

sfr owner households

new renters

slow pace of sfr construction

rental markets