New from MPF Research: Renewal Trends, Millennial Preferences, Suburban Strength
MPF Research provides actionable market research to apartment investors and operators. Here’s the latest from RealPage’s multifamily intelligence division.
Apartment renewal conversion is trending upward
While renewal rates can differ market by market, the national resident renewal level has been trending upward for more than five years. In a new MPF Research report, analyst Brandon Crowell explores retention rates, renewal rent change and regional trends.
Findings show the Midwest and Northeast are home to the highest retention markets, with Hartford, Connecticut leading the top 10 metros for resident retention. The market saw more than 65% of tenants stay at the end of their lease. Meanwhile, San Antonio registered the nation’s lowest renewal rate.
Housing industry should shift its views on millennials, NMHC panelist says
As more millennials enter adulthood, industry insiders are searching for clarity on the group’s housing behaviors. But given the demographic span, that’s an impractical quest, according to John Burns, CEO of John Burns Real Estate Consulting and panelist at the recent National Multifamily Housing Council Research Forum.
Burns suggests multifamily owners and operators abandon the standing generational definitions for more granular and telling age categories. From there, renter profiles become clear.
On the preferences of younger populations, Burns points to relevant financial themes. He notes the group, familiar with the Great Recession, is “scared of debt” and has a lower tendency to buy homes. On square footage, he says they are “perfectly okay without that dining room, if it saves money.”
NMHC panel makes a case for the suburbs
At this month’s NMHC conference in Plano, Texas, a theme of suburban strength shaped several sessions.
Focused on emerging opportunities, one panel highlighted migration patterns, defined suburban types and talked decelerating urban rent growth. A recent MPF Research report supports that narrative, finding over five-, 10- and 15-year periods, high-end suburbs have produced higher risk-adjusted returns than urban core assets.
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