Rental Apartment Popularity in the USA

82% of renters say renting is more affordable than owning, according to a new survey from Freddie Mac, up from 67% just a year ago. Some millennials prefer to rent instead of buy and many retirees want the ease of renting instead of caring for a home.

Renting allows for mobility, travel and freedom. Younger and older generations alike can take advantage of being able to travel freely and more often without the burden of  lawn care, and garbage to drag to the curb. Whether you like to travel around the world, or enjoy going out on the town, rental apartments are a flexible solution.

Apartment demand in the second quarter of 2019 spiked 11% from a year ago. That, in turn, pushed rents up an average 3% nationally to $1,390 per month, according to RealPage, a real estate software and analytics company.

Rental demand is currently highest in the nation’s largest cities, with Dallas/Fort Worth, Chicago, Houston, New York City and Washington, D.C., leading. “Whether it’s by choice or force, renting seems to be making its way into the new American Dream.”[1] The stigma around rental housing has diminished and there are rental apartments for a variety of budgets. With the national rent rising, competition for comfortable rental homes is increasing.

Purpose-Built Rental Housing

Purpose-built rental apartments are now being built in cities across the country. They offer long-term stable rental accommodations.

Purpose-built rental housing, when run by dedicated landlords, allows for consistency in operations. Certified rental buildings have to uphold standards with regards to security, health and safety and human rights.

Purpose-built rental apartments also mean you do not have the threat of a landlord taking the suite off the market at any given time.

Some states like New York, practice rent control and rent stabilization to ensure housing affordability for all. Laws like this one ensure landlords cannot increase rents more than one time a year and only by an approved percentage. Landlord-tenant legislature is vital for the survival of the rental industry and to encourage positive landlord-tenant relations.

Another growing city, Columbus, Ohio has experienced an influx of 20,000-25,000 new people every year. To avoid a housing crisis, Columbus City Council voted unanimously to spend $5.6 million to increase the housing supply.[2] The Affordable Housing Alliance of Central Ohio will administer the funds. By taking proactive approaches to building rental apartments, cities and states will see an influx of job creation, and renter spending.

According to a study done on behalf of the National Apartment Association (NAA) and the National Multifamily Housing Council (NMHC) nearly 40% of all US households live in rental units. Therefore, it is clear that the apartment industry specifically has a large and growing impact on the US economy.

Apartments and Submetering

By 2030, America will need 4.6 million new apartment homes just to meet demand – municipalities, cities and states cannot ignore the facts any longer.[3] The benefits of rental apartments are numerous. An added benefit for rental apartments is the ability to submeter.

Submetering new apartment developments is required by law in Ontario, Canada. Twenty-two states, three counties and Washington, D.C., have statutes, regulations, or rulings on utility submetering. The new California SB 7 law requires water meters and submeters to be installed in apartments and other rental housing buildings constructed after Jan. 1, 2018. The benefits of submetering are undeniable. Submetering systems bring added value and accountability for landlords and residents when it comes to utility usage.

Residents are directly encouraged to use less energy when they are responsible for paying for the power and/or water they use. Additional benefits coincide with increased building value, structural longevity including less wear and tear on pipes and wires. Landlords and property management gain control over an unpredictable and increasing budget expense.

One issue facing the implementation of submetering is educating owner/operators about the products and methodologies that are readily available, easy to implement and reasonable in cost. To educate yourself and learn more about the benefits of submetering read “4 Distinct Submetering Benefits”.

Call 1-855-318-2204 x2 to speak to a Priority Submetering Solutions Representative about utility billing solutions for your rental apartment.

[1] https://www.businessinsider.com/millennials-renting-homes-instead-of-buying-2019-7

[2] https://medium.com/we-are-apartments/columbus-ohio-stays-ahead-of-the-curve-on-affordable-housing-961ef11abcab

[3] http://www.ncsl.org/research/energy/utility-submetering.aspx#targetText=At%20least%20three%20states%E2%80%94Alabama,be%20%E2%80%9Cequitable%E2%80%9D%20to%20customers.