Location is not the number one quality renters look for, according to the recently released 2024 Multi-Residential Satisfaction Study Report from simplydbs. In reality, renters now prize both price and size over placement.
The study, which was conducted from late-May to mid-June 2024, collected responses from 26,000 participants, offering market insights on a multitude of segmentations.
According to the findings, 91.7% of respondents said that they are concerned that rents are on the rise in the city they live in, with 52% saying they are concerned with affording their current rent. It’s no surprise, then, that 73.9% of renters polled said rent price was the most essential factor, among suite size, overall location of community, reputation of building, and suite layout and design. Interestingly, however, a substantial 39% said they would pay more, per month, if their apartment was in a zero-carbon building.
In second place was size, with 60% saying amount of space was the second most essential factor, followed by location at 52.5% — a strong deviation from the old adage “location, location, location.”
simplydbs
Amid high inflation, rising unemployment, and higher than average rents, it appears saving on monthly rent payments has taken a front seat to local geography. And it makes sense, since, as the study highlights, the unemployment rate grew to 6.4% in June 2024, the national average in-place rent price hit a record-breaking $1,521 in Q2 2024, and despite inflation ticking down from 2.9% to 2.7% between May and June of this year, it remains above the 2% target.
With cost of living high, people want the best bang for their buck, which explains the high priority renters place on unit size. In fact, 83% of renters preferred to have their own private balcony, as opposed to a shared luxury space. However, 42% said they would prefer that balcony to be a smaller Juliette balcony, with opening floor-to-ceiling windows, than a larger balcony that eats into the interior unit size. About the same amount (41%) preferred the traditional larger balcony even if it meant a smaller suite.
As well, 62% of respondents said they would choose a larger suite with fewer amenities over a smaller one with less enhanced building amenities, further emphasizing a desire among renters for more space of their own.
According to findings from Atlus Group based on CMHC data, rental projects now account for more than half of housing construction, meaning more rental supply is on the way. With interest rates on the decline, a number of renters will likely consider abandoning their rental respite in search of homeownership. Whether this will mean an increase in rental affordability remains to seen.
As for unit size, you'll have to talk to investors about that.
