MRI’s Rental Housing Trends Report indicates that location and affordability are some of the top concerns for the majority of today’s tenants. MRI predominantly attributes this as a response to a post-pandemic world, with a rise in businesses reverting to office environments leading to a greater need for living close to or within a city for most working professionals.
The 2024 survey showed a significant increase in the number of renters who prefer to live in a city rather than a rural area compared to 2022, with 33% expressing this preference, up from 25%.
The percentage of respondents preferring to live in apartments compared to houses has also doubled, again suggesting that COVID-era aspirations for rural living have declined, with younger renters, particularly, aspiring to city living.
MRI also suggest that the number of long-term renters has also risen across all age groups, which could lead to a much wider pool of tenant demographics for investors to target.
Overall, younger generations were significantly more inclined to prefer city living, with 50% of those aged 18-24 aspiring to live in a city compared to just 15% of 55-64 year olds.
According to MRI: “This reveals how different generations value the closeness to daily amenities, career opportunities, and social activities, with younger individuals more inclined to embrace city life.”
Respondents also valued environmental sustainability in property, with features such as insulation and renewable energy regarded as “as important” as more traditional amenities like parking. However, sustainability features that do not drive cost efficiencies were valued at much lower levels.
