5 Rental Trends To Expect in 2023
Signing a new lease is an exciting step in life. Your signature marks a transition into an exciting opportunity, one full of possibility and promise. But too often, a move to a new city can include difficulties like barren apartments and impenetrable social environments. Luckily, 2023 is the year all that could change for renters and the housing market in general.?
As cities slowly become a renter’s paradise, here are five rental trends you need to know before you sign your next lease.?
#1 The Average Age of Renters is Increasing
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Renting is no longer just for the young. Although the typical portrait of a renter is someone fresh from college, looking to live a little before they settle down, the statistics are starting to change. The current rental market is broken down as:1?
·???????Millennials –?Millennials are still the leading renters, making up 45% of rental applications.?
·???????Gen Z –?About 27% of rental applications are coming from the up-and-coming Zoomers.?
·???????Gen X –?Gen Xers make up a sizable 18% of renters in the U.S.?
·???????Baby Boomers –?Although they’re still the smallest slice of the rental pie, renting is an increasingly popular option for Baby Boomers. They currently make up 10% of the rental market.?
#2 Buildings Are Offering Diversified Spaces
While some workers are headed back to the office, remote work has become the new normal for many people2—and remote-working renters are eager for homes with spaces that can serve multiple functions. More landlords are more likely to offer homes that can meet multiple lifestyle needs, with features like?
·???????Coworking or office spaces
·???????Shared lounges and meeting rooms?
·???????Outdoor spaces like patios or finished roofs
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·???????In-building gyms or saunas
#3 Mortgage Interest Rates Are Rising
People who were thinking about purchasing a home in 2023 may find that renting remains a more attractive option instead. The main reason for this? Mortgage interest rates are predicted to continue to rise this year.3?
In 2022, federal interest rates increased four times.3?They now sit at just above 7%. And the Nasdaq predicts that the rates could fly as high as 9% before the end of 2023.
This increase is largely due to increased economic volatility leftover by the pandemic. And while interest rates will likely eventually even out as we enter a recession, future homeowners may wish to continue saving up for another year before they start a mortgage.?
#4 The Demand for Mixed-Use Properties is Growing
One of the rental market predictions 2023 may bring to life is a change in how rental buildings themselves are used. It’s estimated that 83% of the U.S. population now lives in urban areas.4?But as this population grows, the actual physical space of cities can’t grow with it. With this increase in demand for rental property, there is also an increase in “mixed-use properties” in most cities across the country.5?
Mixed-use properties are those buildings with living spaces on the upper floors but may include a cafe, restaurant, or boutique on the ground floor. Renters may find they don’t have to travel very far at all for that morning barista-made flat white.?
#5 Renting Will Come with More Convenience
Can you negotiate apartment rent? As more and more renters enter the market, landlords are competing for their business by making it easier to complete renting transactions. This means convenient features becoming more common. Renters are well within their rights to expect:?
·???????Digital payment –?No more sending physical checks to pay rental prices through the mail every month. Renters can now pay their rent through services like PayPal, Zelle, or Venmo, or through their rental community’s online portal.?
·???????Digital communication –?Landlords are more likely than ever to offer digital communication. This could include everything from texting casual updates to in-app conversations. Some may even have an app that allows renters to track the status of their maintenance requests for their rental units.?
?Courtesy: The Common Team