The current state:
There were 44 million occupied rental units in the U.S. in 2022, representing about one-third of all U.S. households. (U.S. Census) In December 2023, the median asking rent was an eye-popping $1,964/month. (CBS News)
Gen Z headed 7.9 million rental households in 2022 (18% of the total) and 15.4 million are headed by Millennials (35%). The robust rental market is fueling growth in the single-family built-for-rent sector, with single-family rental starts hitting a record-high annual rate of 70,000 rental homes.
How we’re feeling right now:
This week’s Consumer Pulse looks at renters and found that 64% of current renters aspire to own a home at some point. This aspiration is strongest among the younger generations:
- 87% of Gen Z renters aspire to own a home.
- 80% of Millennial renters aspire to own a home.
- 20% of both generational cohorts feel they would be able to buy a home within the next year.
One of the biggest challenges for renters aspiring to buy a home is the lack of funds for a down payment, which was cited by 66% of all renters in our study.
Why it matters:
This week’s Consumer Pulse report also includes insights on how consumers will look to reduce spending in 2024. Only 23% of respondents said they would look to cut spending on home improvements, making it the tenth lowest level of the 14 categories we tested. This is encouraging news for home improvement brands and retailers. In addition, approximately 16% of renters move each year, which will help sales of home improvement products as landlords turn their rental units.
Do you want to take the Pulse of your customers? Our Insights team will partner with you to design a study to help you better understand your customers and their problems, and how your brand can win at retail.
To get additional insight into what this means for brands and retailers, read the entire study.
