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While rent growth continued to slow in March 2023, landlords and renters now face different challenges. Avail, by Realtor.com®, surveyed independent landlords and renters across the US to understand what obstacles they’re facing and how they’re being addressed.
From the data collected, here are four key trends of the independent rental market.
1. Fewer Landlords Plan to Increase Rent
Despite growing concerns about increasing rent prices, we discovered fewer independent landlords are planning to raise their rent prices within the next 12 months. 65.1% of surveyed landlords say they plan to raise the rent of at least one of their properties, which is down from a reported 70.4% in October 2022.
What’s causing landlords to pause rent increases? 48.2% of those surveyed who aren’t raising rent for renewals want to avoid turnover, likely recognizing that finding a new renter may be difficult given current market conditions. Additionally, survey findings suggest that the relationship with their renter is a significant factor. 40.3% of landlords who aren’t raising rent for renewals cite a strong landlord-tenant relationship as a key influence in their decision.
Additionally, 32.4% of surveyed landlords believe that rent for their units is currently at or above fair market value, and 15.1% of landlords expect to see local market rents decrease in the coming 12 months.
2. Landlords Are Focusing on Evictions, Payment History, and Income When Screening Renters
When asked about the most important criteria during the renter screening process, 55.4% of landlords cited previous evictions. 46.5% of said level of income is of major importance, and 41.8% take close note of a history of late rent payments.
However, this doesn’t mean landlords are quick to reject renters based on these factors — especially considering how many renters were impacted by the pandemic. 58.3% of landlords are willing to let a renter explain negative information on their application and only 35.1% reject applicants 50% or more of the time.
3. Fewer Renters Are Negotiating Smaller Rent Increases, But Success Rates Are Improving
Rent growth may be slowing, but prices are still higher than they were several years ago, making affordability a main concern for renters. However, even though more than half (54.9%) of surveyed renters feel they can’t afford a rent increase, fewer renters attempt to negotiate a more minor price hike. Of those who recently renewed their lease, only 28% tried to negotiate with their landlord. This is down from 34.7% in October 2022, and 38.7% in July 2022.
Despite the dip in renters attempting to negotiate, the success rate is on the rise. In fact, 25.4% of renters were successful in their negotiation attempts, up from 17.3% in October 2022.
One of the major contributing factors to this increase in successful negotiations appears to be how long the renter has lived at the property. More than half (51.8%) of surveyed landlords say they’re more likely to negotiate with renters who have lived in the unit for multiple years. This is despite the fact that 30.5% of landlords say they’d be extremely unlikely to negotiate when renewing a lease, and 27.6% claimed to be somewhat unlikely.
4. Renters Continue to Struggle With Home-Buying Goals
Successful negotiations may be a small win for renters, but other financial challenges still persist. For example, 66.3% of renters still feel they’re saving less each month than 12 months ago. Even though this is down from the 70.6% reported in October 2022, it’s likely a result of factors like inflation and recent rent increases.
Furthermore, less than one-third (30%) of renters are considering purchasing a home in the next 12 months, continuing a downward trend from 34.6% in July 2022 and 32.3% in October 2022. While they’re still considering a home purchase, 81.9% of these renters agree that rising interest rates and inflation have impacted their plans to buy a home, and 65.9% are delaying their purchasing plans.
Of renters who aren’t considering purchasing a home within the next 12 months, more than half (59.7%) don’t feel they have enough saved for a down payment. Furthermore, 41.1% of renters don’t believe they’d qualify for a mortgage — a drastic increase from the 19.6% reported in October 2022.
To help navigate these obstacles, renters are making compromises in their renting preferences. Nearly half of surveyed renters are considering a location-based change to help save on rent. 21.1% have thought about moving to a cheaper or less-desirable neighborhood, 19% are considering moving to a more affordable area in the state, and 15.6% see moving to an affordable area out of state as a viable option.
Landlord Data: Portfolio Size, Unit Types, and Median Household Income
- Nearly three in ten (28.7%) landlords own one rental property, while 38.1% own two to four properties. 15.9% of landlords own between five and nine rental properties.
- Of rental properties owned, more than half (55.5%) of landlords rent out a single-family home. 31.2% of landlords have two- to four-unit properties, and 9.6% possess rentals with five to 24 units.
- The median household income for surveyed landlords is $125,000.
Renter Data: Unit Type, Average Rent, Median Household Income
- 47% of renters currently rent a single-family home. 27.6% live in a two- to four-unit property, and 11.9% of renters live in a five- to 24-unit property.
- The median rent price for surveyed renters is $1,388.
- The median household income among renters surveyed is $50,000.
Research Methodology
The Avail Q1 2023 Landlord and Renter survey collected responses from a nationally representative sample of more than 2,500 independent landlords and renters. The survey was conducted between March 28th, 2023, and April 7th, 2023. The margin of error for landlords is ± 2.5%, and ± 3.2% for renters.
Avail regularly conducts rental market research to understand the needs of independent landlords and their renters. Stay up to date on rental market trends, news, and our latest research by joining our special reports mailing list.
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Early signs of a cooling rental market began to appear in the summer of 2022, but financial challenges remain for landlords and renters. To better understand how they’re faring as we approach the new year, Avail (part of Realtor.com®) surveyed independent landlords and renters across the country. These results and more rental market insights are available in the Realtor.com® October 2022 Rental Report.
Our Avail, by Realtor.com®, 2022 Fall Landlord and Renter survey identified four additional trends set to impact the rental market in the new year. Here’s what independent landlords and renters should know:
1. Negotiating Rent May Be Challenging for Renters
With inflation impacting households across the country, affordability is a primary challenge facing many renters. While some renter households are attempting to save on expenses by moving to a more affordable rental, others are trying to negotiate lower rent prices as their landlords increase rent costs. However, only one-third (34.7%) of surveyed renters reported trying to negotiate with their landlord the last time their rent was raised. Of those who attempted to negotiate, only 17.3% (and just 6% of all surveyed renters) reported successfully negotiating a smaller rent increase.
What’s contributing to this low success rate? Most landlords are not open to negotiating, our survey found. Only 14.4% of landlords report being somewhat likely to negotiate with a prospective new renter, while just 2.6% say they’d be extremely likely to negotiate with a new renter. The willingness to negotiate with renewing renters isn’t much greater, with 17.5% being somewhat likely, and 4.4% being extremely likely, respectively.
Though not all renters may be able to negotiate a lower rent amount with their landlord, renters who have lived at a rental property for multiple years have a better chance of success. Around half of surveyed landlords (50.6%) report being more open to negotiating if the renewing tenant has lived in the unit for multiple years.
Negotiating rent can feel uncomfortable, and may dissuade renters from trying. However, learning how to negotiate rent with your landlord can help you prepare for the conversation. Even though a successful negotiation isn’t guaranteed, understanding the process may help improve the rate of success in the coming year.
2. Inflation and Rising Interest Rates Are Impacting Savings, but Most Renter Credit Scores Remain Stable
Many renters are putting homebuying plans on hold as they face rising costs. Less than one-third of surveyed renters (32.3%) are considering buying a home within the next 12 months — down from 34.6% in July 2022. Of those considering buying, 83.9% say rising interest rates and inflation have impacted their decision to buy, with 68.3% of these renters considering delaying their home purchase.
Those who aren’t considering buying a home are taking their savings into consideration, with 44.7% of survey respondents believing they don’t have enough currently saved for a down payment. The typical renter household surveyed can only save $100 per month, and 78.5% report saving less than they did 12 months ago.
Despite cost challenges impacting renters’ ability to save, most have not seen a decline in their credit health. Among surveyed renters, nearly two-thirds have seen their credit score increase (34.8%) or stay the same (30.1%). Almost half of renters (45%) attributed this to missing few or no payments, while 42.9% reported paying off a loan, credit card, or another line of credit. Additionally, renters who reported on-time rent payments to credit bureaus — such as through Avail CreditBoost — were more likely to report a credit score increase over the past 12 months.
If you’re a renter looking to build your credit score, you can explore platforms like Avail that allow you to report on-time rent payments with CreditBoost for $3.95/per reported month. Reporting these payments can help build your FICO 9, FICO XD, and VantageScore to get you one step closer to homeownership.
3. More Landlords Are Looking to Buy Than Sell, Despite Rising Ownership Costs
Landlords aren’t immune to economic challenges — 80% of landlords reported an increase in their cost of ownership over the past 12 months, with 40.6% reporting an increase of more than 10%.
In response to rising costs, landlords are increasing their properties’ rents. Of surveyed landlords, 47.6% report plans to increase rent by between 5% and 10%. However, more than one-third (38%) of landlords plan to increase rent by less than 5%.
Property costs may be rising, but 28% of those surveyed report plans to buy one or more residential properties in the next 12 months — up from 23.4% in July. With rental properties being more stable and less volatile than the stock market, landlords remain optimistic about investing in the rental market. In fact, only 8.3% of surveyed landlords plan to sell any of their rental property within the next 12 months, down from 11.2% reported in April 2022.
As costs for property owners rise, landlords should get a sense of how much they spend on operating expenses and make sure they have funds to cover those expenses in 2023. The Avail Rental Property Accounting tool can help track rental income and expenses for one or more rental properties. The easy-to-read income and expense tracker enables you to break down each transaction into specific details, including rent payments and logged maintenance costs, as well as store receipts.
4. Estimate Tools Are Making Setting the Right Rent Price Easier for Landlords
Charging too much for rent can contribute to prolonged vacancies, which is why it’s important to know how much to charge in rent. To help inform their decision-making, over half of landlords (58.8%) use an online rent estimate or comparison tool to help determine the amount they should charge.
A majority of landlords across all portfolio sizes use online rent estimate tools, but younger landlords and those with less experience are more likely to use these tools. Two-thirds of landlords under 40 years old (66.3%) report using an online rent estimate or comparison tool, compared to 54.5% of those over 60 years old. More than 3-in-5 landlords (61.5%) with less than three years of experience use such tools, compared to 56.6% of landlords who have more than 10 years of experience. A possible explanation is that younger landlords may be more familiar with finding and leveraging this type of technology, while older landlords are less likely to divert from their established ways.
To help landlords better plan for rent price increases, Avail offers Rent Price Analysis reports that provide comprehensive information on local rental comps based on similar units. In addition to metrics like a rent estimate, confidence score, and estimated vacancy rate, the report also contains county rent trends by bedroom and unit type.
Setting a price that’s both fair and profitable in the face of economic challenges is no easy task. But by leveraging an Avail Rent Analysis report, landlords can feel confident about their rent price without spending hours manually researching rentals in the area.
Stay Informed on the Rental Market
It’s essential for landlords and renters to understand key trends in the rental market to prepare for the future. Avail offers a detailed look at the latest housing research findings and a free resource library of educational content to make renting easier.
We also conduct ongoing rental market research to help better understand the needs of independent landlords and their renters. To stay updated with rental market news, trends, and research, subscribe to our special reports mailing list.
Create an account or log in today to make renting easier for both landlords and renters.
Research Methodology
The Avail Quarterly Landlord and Renter survey was conducted nationwide between November 1, 2022, and November 9, 2022. 1,032 independent landlords and 1,672 renters were surveyed. The margin of error for landlords is ±3.1% and ±2.4% for renters.
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Signs of a cooling rental market began to surface in July 2022, but renters are still waiting to feel the positive effects. Avail, by Realtor.com®, surveyed independent landlords and renters across the country to understand how they’re adapting to a shifting rental landscape. These results and more have been compiled as part of the Realtor.com® October 2022 Rental Report.
The Avail, by Realtor.com®, 2022 Fall Landlord and Renter Survey found that a majority of landlords still aim to raise the rent of at least one of their rental properties within the next year. The size of these expected rent increases has decreased, with more landlords planning to keep their price increases below 5%. When asked what influenced their decision, a majority of landlords cited changes in local rental market prices and increasing ownership costs as major factors.
Renters are facing financial challenges caused by major rent hikes over the past several years. Whether renewing a lease or moving to a new unit, the majority of surveyed renters reported sizable increases in their rent. Renters hoping to negotiate their rent price with landlords have also seen little success, especially when moving to a new unit. Increased rent and inflation have made it challenging for renter households to save, with more choosing to delay their home-buying plans.
For more insights uncovered in our 2022 Fall Landlord and Renter Survey, visit the Realtor.com® Economic Research blog, which includes a comprehensive update of rental market trends. For additional rental market research, visit the Avail Housing Research page to join the special reports mailing list that provides news, trends, and insights into the independent rental market directly to your inbox.
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Economic inflation continues to drive higher costs, and the rental market is no exception. Avail (part of Realtor.com®) surveyed independent landlords and renters across the country to find out how they’re adapting to these ongoing financial challenges. Findings from the Avail Quarterly Landlord and Renter survey identified financial stressors, how landlords and renters are adjusting, and possible signs of a cooling rental market.
Data collected from our survey highlighted four key trends in the current shape of the independent rental market.
1. Increased Property Ownership Costs Are Prompting Higher Rent Prices
Inflation is continuing to drive up the cost of rental property ownership. Among surveyed landlords planning to raise rent, 80.7% indicated that increased ownership costs have influenced their decision.
These challenges have manifested in several ways, with 79.1% of surveyed landlords who have seen their ownership costs increase citing increased property tax payments as a major factor. A further three-quarters identified maintenance and upkeep cost increases over the past 12 months, while nearly half (45.9%) also found increasing utility costs to be a challenge. In addition to these mounting costs, 26.6% of surveyed landlords have reported lost income due to missed rent over the past 12 months.
As a result of increasing costs and missed income, 72.1% of surveyed landlords plan to raise the rent of at least one of their rental properties within the next 12 months.
2. Moving to a New Residence Is Costing Renters More Than Renewing
While landlords combat property ownership costs, many renters continue to face affordability challenges. More than half (52.4%) of surveyed renters who have been in their current rental for 12 to 24 months have seen rent increase by an average of 13%. Meanwhile, those seeking to move to a new rental are faced with more drastic hikes. A rent price increase of nearly 27% was reported by surveyed renters who moved from a prior rental within the past year — almost double what those who renewed their lease are facing.
Homebuying plans have also been affected by inflation. More than eight in ten renters (80.8%) who are considering purchasing a home reported that inflation and rising interest rates have impacted their plans to buy. Of these renters, almost three-quarters (72.7%) are considering delaying moving forward with their home purchase.
3. Landlords Are Maintaining Their Portfolios
Landlords aren’t looking to offload their rental properties in response to higher ownership costs. Less than one in ten surveyed landlords (7.9%) plan to sell one or more of their rentals within the next 12 months — a significant drop from 16.2% of landlords who reported planning to sell in the January 2022 Avail Quarterly Landlord survey. Fewer landlords plan to purchase property, with 23.4% of surveyed respondents planning to increase their portfolio size, a significant decrease from 37.5% in January 2022.
The decline in landlords planning to sell is likely due to unique conditions in the current rental market. As more renters opt to save money by renewing their leases, rental vacancy rates are at their lowest point in nearly four decades. These unique conditions mean landlords are also able to increase rent for existing tenants without much pushback. Overall, less than 10% of renters report successfully negotiating a smaller rent increase when renewing their lease. This suggests that landlords are confident that they can find renters willing to pay.
4. Shifting Trends May Suggest an End to Drastic Rent Increases
Despite challenges in the current rental market, signs of cooling are starting to appear. While more than seven in ten landlords still plan to raise rent within the next 12 months, the share of landlords planning to raise rent plateaued in July, after increasing from January to April. The amount by which landlords are planning to increase rent also appears to be on the decline. Among landlords planning to raise rent, only one in five landlords (20.8%) plan to raise rent by more than 10%, down from 25.4% who planned to raise rent by more than 10% in April.
For renters, the high cost of moving to a new rental may lead to lower demand as renters see lease renewal as their most affordable option. However, two-thirds of renters (66.2%) say that rent increases have forced them to consider moving to a more affordable residence. Given recent rent increases, renters looking for more affordability will have to make sacrifices. More than half of renters (53.2%) looking for more affordability indicated they are willing to sacrifice location, 47.3% would forgo community amenities like parking, a pool, or a fitness center, and 46.5% would choose a smaller-sized residence if it meant a lower rent cost. With renters on the hunt for more affordability, or staying put to avoid rent hikes, an end to drastic rent increases may be on the horizon.
Renter Data: Renter Experience, Building Sizes, and Average Monthly Rent
- More than four in ten renters (44.1%) have lived in their current residence for less than a year. Three-quarters (73%) of surveyed renters have lived in their current residence for less than three years.
- More than four in ten renters (42.5%) live in one-unit properties, while an additional 29.4% live in two- to four-unit properties.
- The median monthly rent among renters surveyed is $1,400, up $100 from April 2022.
Landlord Data: Landlord Experience, Property Sizes, and Mortgages
- Nearly half of landlords (48%) indicate they’ve been a landlord for more than 10 years — nearly two-thirds (64%) have been landlords for more than five years.
- Two-thirds of landlords (66.8%) own one-unit properties, while nearly four in ten landlords (38.4%) own two- to four-unit properties.
- Seven in ten landlords (72.1%) own at least one rental property that has a mortgage.
Research Methodology
The July 2022 Avail Rental Market survey collected responses from a nationally representative sample of more than 2,600 independent landlords and renters. The survey was conducted between July 21st, 2022, and August 1st, 2022. The margin of error for landlords is ± 2.7%, and ± 2.6% for renters.
Avail regularly conducts rental market research to understand the needs of independent landlords and their renters. Stay up to date on rental market trends, news, and our latest research by joining our special reports mailing list.
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Avail (part of Realtor.com®) surveyed independent landlords and renters nationwide to better understand how growing rent prices are impacting the rental market. The findings from the Avail Quarterly Landlord and Renter survey confirmed the direction rent prices are trending, how rent increases are impacting renters, the reasoning for increased rents, and how renters are planning to adjust.
Here are four trends based on the data from the survey that will be used to inform our Quarterly Rental Market report.
1. Rents Are Rising to New Highs
According to the Realtor.com April Rental Report, rental listing prices are up by nearly 17% nationwide for studio to two-bedroom properties compared to last year — especially in warm-weather metropolitan areas. Listed rent prices in Sun Belt cities like Orlando, San Diego, and Tampa increased by more than 25% year-over-year, while listed rents in Miami increased by a staggering 52%.
However, those aren’t the only places seeing increases in rent prices. Our survey discovered that more than half of renters (52.1%) across the country saw their rent increase by a median of $200 since moving into their current residence. Of those that moved into their current residence since the beginning of the pandemic, nearly one-third of renters (31.9%) saw their rent increase by a median of $180.
2. Raising Rents Are Causing Financial Strain for Renters
Growing costs due to inflation are resulting in renters dealing with more financial strain than they’ve faced in recent memory. According to our survey, renters are left with an average of $300 per month after covering necessary expenses — such as rent, utilities, debt payments, groceries, and transportation — while renters earning less than $50,000 annually are left with an average of $200 each month.
Two-thirds of renters (66.1%) stated increasing rents and other housing expenses as the biggest financial strain for their household, in addition to other expenses like food and groceries (57.3%), and auto and transportation (50.8%).
Because of increasing costs, more than three-quarters of renter households (76.1%) say they are able to save less money each month compared to 12 months ago. The typical renter household surveyed reported being able to only save $50 each month, while renters earning less than $50,000 annually reported saving $14 per month.
3. Rental Affordability Issues Are Likely Here To Stay
Due to growing inflation, rent prices are anticipated to continue increasing as landlords look to cover the rising cost of rental property ownership. More than 7 in 10 (72.1%) landlords said they plan to raise the rent of at least one of their rental properties within the next 12 months, which is up from 65.1% in January 2022.
Among landlords planning to raise rent, nearly half (45.8%) expect to raise rent anywhere from 5% to 10% and one-quarter of landlords (25.4%) plan to raise rent by more than 10% — up considerably from January 2022 when only 16.4% of landlords planned to raise rent by more than 10%.
More than 4 in 10 landlords (41.4%) planning to increase rent are attributing the change to the increasing costs of ownership. Of landlords stating increasing costs of ownership as the primary driver in increasing rent, more than 8 in 10 reported higher property taxes in the past 12 months. An additional 7 in 10 landlords experienced increases in maintenance costs over the past 12 months — more specifically, a median amount of $6,000 to repair their rental units.
Increasing market costs are also playing a role in landlords’ decisions to raise rent. According to our survey, 4 in 10 (39.5%) say they’re raising rent to keep up with increasing rental market prices. Among those landlords, nearly half of them (47.1%) reported market rents in their area going up by between 10% and 20%.
Our previous Quarterly Landlord and Renter survey showed that four out of five renters (82.4%) said they have not missed any rent payments over the past 12 months, which showed promising improvements for landlords. However, new data indicates that 1 in 20 (5%) landlords are raising rent to offset missed rental income during the pandemic. Of those raising rent to cover missed rental income due to the pandemic, they reported a median amount in missed income of $15,000.
4. Increasing Rents Are Driving Renters to Explore More Affordable Options
While it may not be possible to escape increasing rent prices, renters are planning on exploring their options to reduce financial strains. Among renters that saw their rent increase since moving into their current residence, nearly three-quarters (72.9%) are considering moving to a more affordable residence.
Due to rents continuing to rise, most renters that decide to move may still pay more in rent. In fact, our survey found that renters that moved within the past year are paying $350 more in rent compared to their previous residence, meaning renters looking for more affordability will likely be giving up size, location, and amenities in their next rental.
Given rising rents, the best option for many renters feeling financial strain may be to stay put and cut costs elsewhere. Renters report cutting costs on entertainment (67.1%), and food and groceries (62.3%) to alleviate the financial strain caused by inflation.
Renter Data: Renter Experience, Building Sizes, and Average Monthly Rent
- 4 in 10 renters surveyed (40.9%) live in one unit properties, while 27.5% live in two- to four-unit properties.
- Nearly three-quarters of renters (73.9%) finance their monthly rental payments through regular employment, up 4.3% from January. More than 1 in 10 renters (13.4%) receive government aid or assistance.
- The median rent paid by renters surveyed is $1,300.
Landlord Data: Landlord Experience, Property Sizes, and Mortgages
- Nearly half of landlords (45.7%) indicate they’ve been a landlord for more than 10 years — nearly two-thirds (63.4%) have been landlords for more than 5 years.
- Nearly 7 in 10 landlords (68%) own 1 unit properties, while nearly 4 in 10 landlords (37.5%) own 2 to 4 unit properties.
- 7 in 10 landlords (70.5%) own at least one rental property that has a mortgage.
Research Methodology
The April 2022 Avail Rental Market survey collected responses from a nationally representative sample of more than 2,400 independent landlords and renters. The survey was conducted between April 21st, 2022 and May 2nd, 2022. The margin of error for landlords is ± 2.9%, and ± 2.7% for renters.
Avail regularly conducts rental market research to understand the needs of independent landlords and their renters. Stay up to date on rental market trends, news, and our latest research by joining our special reports mailing list.
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Entering the third year of rental market disruptions caused by the pandemic, Avail (part of Realtor.com®) surveyed independent landlords and renters across the country to find out how they’re faring. Our data revealed moving trends, insight into rent payments and evictions, and how landlords plan to financially recoup and adapt their renting policies for a post-pandemic era.
Based on our data, these six trends will shape the independent rental market in the beginning of 2022.
1. Nearly Half of Renters Plan to Move This Year, But Most Will Continue to Rent
Our survey showed that while renters are moving, most of them will continue to rent their homes — even in a competitive rental market that’s expected to continue into 2022, driven by a demand for rental housing and a decrease in homebuyer sentiment due to high mortgage rates and home prices.
Almost half of renters surveyed (45.9%) reported that they plan to move residences within the next 12 months, with another quarter (24.6%) unsure about their moving plans. Of those that said they will be moving, more than half (51.8%) plan to rent their next residence, while nearly one-quarter (23.8%) plan to buy their next residence.
Over half (52.9%) of renters who plan to move to a new rental indicated they do not have enough savings for a down payment on a home, while 40.0% said they don’t believe they would qualify for a mortgage.
2. Renter Confidence Has Grown Dramatically
Our last survey in September 2021 showed that 42.7% of renters had missed at least one rent payment since the start of the pandemic — up from the 30.8% who had missed a payment in May 2021.
New data, however, indicates more positive rent payment trends. Four out of five renters (82.4%) said they have not missed any rent payments over the past 12 months. Of renters who have missed a rent payment over the past 12 months, around one-third (32.6%) indicate that they had missed just one payment.
Looking forward, more than three-quarters of renters surveyed (76.6%) do not believe that they will miss a rent payment in the next three months. The share of renters who do not believe they will miss a rent payment in the next three months has grown dramatically over the past year. In our February 2021 survey, just 15.2% of renters did not believe they would miss a rent payment over the next three months.
3. More Landlords Plan on Raising the Rent Than Selling Their Properties
As landlords attempt to offset missed rent payments caused by the pandemic, many predicted that they would either raise rent or sell to recoup pandemic losses. According to our data, more landlords plan to raise the rent in at least one of their rental properties (65.1%) than sell at least one of their rentals (16.2%) in the next 12 months.
The majority of landlords surveyed estimate that they will raise rent by between 5% and 10%, increases that reflect a hot rental market and rent surges seen in 2021.
Of the landlords planning to sell at least one rental property, more than half (55.1%) indicate that the desire to cash in on the increased value of their property is a factor in deciding to sell. Around a quarter of these landlords indicated no longer wanting to be a landlord (25.7%) or difficulty collecting rent from tenants (23%) as factors in their decision to sell.
4. The Majority of Landlords Have Not Sought an Eviction
As eviction moratoriums were lifted in 2021 and renters were still struggling to make payments, it was unclear how many renters may be evicted from their residences. However, our data shows that the majority of landlords (82.3%) have not initiated eviction proceedings against any of their tenants in the past 12 months, and more than three-quarters of landlords (77.5%) are not considering encouraging a tenant to vacate a property within the next three months.
Renters have echoed this sentiment, with 94.7% reporting that they had not had eviction proceedings brought against them by a landlord in the past 12 months. Other methods of encouraging a renter to vacate a unit were also rarely reported: Just 5.1% of renters mutually agreed to terminate their lease, and another 5.1% had a landlord refuse to renew their lease.
Looking forward, more than a third of landlords (36.1%) indicate that just one month of missed rent would trigger them to push for eviction. An additional 51.4% indicate they would push for eviction after two or three months of missed rent.
On the other hand, more than 70% of renters believe that just one or two months of missed rent payments would trigger their landlord to push for eviction, and the vast majority of renters (96.7%) believe that six or fewer months of missed rent payments would trigger their landlord to push for eviction.
5. Awareness of Emergency Rental Assistance Has Stagnated
Previous Avail surveys have exposed a lack of awareness and understanding of eligibility around emergency rental assistance (ERA) programs. In our September 2021 survey, more than half of renters (62.8%) and landlords (56.9%) were unsure of whether or not they were eligible for ERA programs, with just 56% of renters and 78.1% of landlords aware that rent assistance programs even existed.
New data indicates that awareness around these programs has not increased. Only 51.3% of renters and 70.5% of landlords said they are aware of emergency rental assistance programs created to help renters and landlords during COVID-19 — a small drop in awareness among both groups.
Among the renters who are aware of emergency rental assistance programs, just 1 in 5 renters (21.2%) believe they are eligible to receive emergency rental assistance to cover missed rent payments.
Nearly half of landlords (46.1%) are unsure if they are eligible for emergency rental assistance to cover their tenant’s missed rent payments, while 3 in 10 (30.2%) do not believe they are eligible for emergency rental assistance.
6. Many Landlords Are Tightening Their Tenant Screening Practices
After disruptions and financial losses caused by missed rent payments due to the pandemic, 40% of landlords indicated that their applicant screening method had become more stringent over the past 12 months. Nearly 6 in 10 landlords (58%) said their screening practices had remained the same.
When landlords screen tenants, the most commonly-reported methods were using income and job history (89.3%), interviews with applicants (84.3%), and rental history and evictions (82.4%) to screen rental applicants. Of this information, landlords indicated that previous eviction (54.6%) and level of income (52.9%) are the two most important factors when screening applicants.
More than 4 in 10 landlords (44.2%) indicate that they allow applicants to explain any negative information in their tenant screening report. When it comes to rejecting tenant applications, most landlords (53.1%) reported that they reject less than half of applicants based on tenant screening information.
Renter Data: Renter Experience, Building Sizes, and Average Monthly Rent
- More than a quarter of renters surveyed (27.7%) reported that they have been a renter for less than a year, while nearly half of renters have been renting for less than three years (48.8%) and almost a quarter have been renting for more than 10 years (23.3%).
- Three-quarters of renters live in properties with four units or less (66.4%), and nearly 1 in 10 renters live in properties with more than 100 units.
- The average rent paid by renters surveyed was $1,388 per month. Median rent was $1,253 per month.
- Nearly 7 in 10 renters (69.6%) finance their monthly rental payments through regular employment; More than 1 in 10 renters (13%) receive government aid or assistance, are finding new employment or sources of income (12.7%), or are using savings (11%) to finance their rental payments.
Landlord Data: Landlord Experience, Property Sizes, and Mortgages
- More than half of landlords (51.3%) surveyed indicate they’ve been a landlord for more than 10 years, while two-thirds (67.6%) have been landlords for more than five years.
- More than 7 in 10 landlords own either one (32.1%) or two-to-four properties (38.8%).
- More than 6 in 10 landlords own one-unit properties, while 4 in 10 landlords (40.6%) own two-to-four unit properties.
- 7 in 10 landlords (70.6%) own at least one rental property that has a mortgage.
Research Methodology
The Avail quarterly landlord and renter survey was conducted nationwide between January 13th, 2022 and January 25th, 2022. Approximately 1,156 landlords and 2,163 renters were surveyed. The margin of error for landlords is estimated at ±2.9% and ±2.1% for renters.
Avail regularly conducts rental market research to understand the needs of independent landlords and their renters. To stay up to date with rental market trends, news, and current research, join our special reports mailing list.
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DIY landlords and their tenants are the backbone of thriving residential communities across the country. When the pandemic began, uncertainty hit these communities seemingly overnight. How would renters now struggling with employment be able cover their next rent payment? How would landlords offset lost rental income? Would a wave of evictions sweep through the rental market?
Having reached more than a million DIY landlords and their tenants, Avail was in a unique position to help answer these questions and advocate for the independent rental community. Armed with insights and emboldened by impactful partnerships, we’re now creating new Avail technology solutions to target these rental market challenges and strengthening housing security.
When the pandemic began, Avail quickly created partnerships with national housing leaders like Urban Institute to better understand the pandemic’s impact on housing security. Together with Urban, we launched a national survey of independent landlords and tenants to inform policymakers on the pandemic’s impact.
As federal, state, and local governments began rolling out assistance programs, we highlighted barriers preventing landlords and renters from receiving assistance. To assess the health of these vital communities on an ongoing basis, we also created the Mom-and-Pop Landlord Rent Payment Tracker, which provides near-real-time data on rental payments across the country.
With an understanding of challenges faced by independent landlords and tenants, we began presenting these insights to the White House, Consumer Financial Protection Bureau (CFPB), U.S. Department of the Treasury, U.S. Census Bureau, and state and local housing authorities. This includes monthly roundtable discussions with the White House to provide updates and ensure that the voice of the independent rental community has a place in critical policy conversations.
While we’re proud of the research and advocacy work we’ve done to support DIY landlords and their tenants, we also recognize that advocacy alone won’t solve these challenges — it must be paired with action. Guided by our mission to make it easier for landlords to manage their properties and to improve the rental experience for tenants, we’re creating new technology solutions to overcome the challenges exposed by the pandemic.
To begin exploring how Avail’s technology tools could be used to support landlords and tenants in need, we partnered with the Chan Zuckerberg Initiative and a team of nonprofits to create the Local Rental Owners Collaborative (LROC) — a first-of-its-kind program providing assistance to struggling landlords and tenants in South Los Angeles. To support the program, we leverage Avail technology to facilitate application intake, document signing, distribution of assistance funds, and data reporting.
Having shown our tools to be effective in providing assistance to struggling landlords and renters in South LA, Avail was also chosen to participate in a tech sprint focused on “Preventing Crisis for Low-Income Renters & Small Landlords,” sponsored by the U.S. Census Bureau and CFPB. Based on conversations with housing leaders across the country, we leveraged support from the tech sprint to refine our vision for Avail-powered technology that would increase connectivity between independent landlords, their tenants, and the housing agencies and nonprofits providing resources and support.
Guided by feedback from our landlords and tenants, and the strong partnerships we’ve built, we’re now putting this vision into practice. First, we’re building a new technology infrastructure platform that more closely connects housing resource providers to independent landlords and tenants in need. Second, we’re incorporating what we’ve learned into existing Avail tools, ensuring that landlords and tenants have access to more resources than ever before. Lastly, we’re continuing to expand our partnerships and grow our impact, especially with housing agencies and nonprofits that can leverage these new tools.
Independent landlords and their tenants are the backbone of healthy housing communities across the country. With new technology solutions to rental market challenges, Avail is committed to strengthening housing security in these communities.
To learn more about this work and get involved, visit our website.
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Increasing home prices and low housing inventory indicate a competitive market for homebuyers in 2022. But with rent prices and the demand for rental housing on the rise, one group of buyers may still be highly motivated and in a good position to purchase property: real estate investors.
Whether you’re looking to buy your first investment property or planning to add another to your portfolio, we’ve analyzed and ranked the largest 50 U.S. markets to invest based on affordability, appreciation, rental income, population growth, and even the share of tenants who pay their rent on time.
Based on Realtor.com® housing market and Avail rental market data, here are the best places to buy a rental property in 2022:
1. Columbus, Ohio
Ranking No. 1 as the best place to invest, Columbus is one of Ohio’s most populous and fastest-growing cities. With a lower cost of living, lively downtown neighborhoods, and an economy boosted by Ohio State University, Columbus has attracted remote workers and transplants from more expensive areas, especially during the pandemic.
Columbus ranked in the top 10 out of 50 metropolitan areas for best investment appreciation (No. 8) and best rental income growth (No. 6). Plus, Avail data shows that 90% of renters in Columbus paid their rent on time in 2021 — ranking No. 8 for highest share of on-time rent payments.
- Best place to invest index score: 87.8
- Median purchase price: $217,100
- Median rental listing price: $1,540
- Rental listing price growth: 4%
2. Orlando-Kissimmee-Sanford, Florida
Greater Orlando is known for its tourist attractions (like Walt Disney World and Universal Studios), but the metropolitan area attracts more than just visitors — Orlando.org reported that the region was welcoming 1,000 new residents per week from slower-growth states. Plus, over half of residents (55%) rent their homes, according to Zumper.
Florida has lower-than-average property taxes and no personal income tax, and the Greater Orlando area ranked No. 2 on our list for best investment appreciation and No. 7 for best rental income growth.
- Best place to invest index score: 86.2
- Median purchase price: $216,600
- Median rental listing price: $1,380
- Rental listing price growth: 3.6%
3. Las Vegas-Henderson-Paradise, Nevada
The Las Vegas-Henderson-Paradise desert offers a moderate winter climate, an economy driven by tourism from the Strip, and the most affordable housing market in our list of top 10 places to invest — especially compared to major cities nearby, like Los Angeles, Phoenix, and San Diego.
Home prices here soared to record-levels during the pandemic, mostly driven by out-of-state cash buyers and investors. While the market is especially competitive, many first-time homebuyers and non-investors have been forced to keep renting due to local competition, continuing the demand for rental properties in the region.
- Best place to invest index score: 85.3
- Median purchase price: $205,800
- Median rental listing price: $1,174
- Rental listing price growth: 2.7%
4. Raleigh, North Carolina
Raleigh is the second-fastest growing city out of the 50 metro areas we analyzed due to explosive population growth over the last several years. Part of the “Research Triangle” (consisting of Raleigh, Durham, and Chapel Hill), the area is known for its universities, greenspace, food scene, and craft breweries, helping it attract and sustain young and educated residents.
Raleigh ranked No. 4 on the Wall Street Journal/Realtor.com® 2021 Emerging Housing Market Index for both investors and homeowners, and Avail data shows that 92% of renters in Raleigh paid their rent on time in 2021 — ranking No. 4 for highest share of on-time rent payments.
- Best place to invest index score: 84
- Median purchase price: $220,600
- Median rental listing price: $1,162
- Rental listing price growth: 1.4%
5. Tampa-St. Petersburg-Clearwater, Florida
Sitting on Florida’s Gulf Coast, the Tampa Bay area offers coastal living and year-round warm weather. According to Redfin, real estate investors bought one in four homes in the Tampa metro area in the third quarter of 2021, and rent prices have surged more than most metros in the country — Realtor.com® reported a November rent increase of 39% year-over-year for the Tampa metro area, second only to Miami-Fort Lauderdale-West Palm Beach.
With lower-than-average state property taxes and no personal income tax, the Tampa-St. Petersburg-Clearwater metro area ranked No. 1 for best investment appreciation and No. 5 for best rental income growth.
- Best place to invest index score: 83
- Median purchase price: $364,200
- Median rental listing price: $1,287
- Rental listing price growth: 4.4%
6. Austin-Round Rock-Georgetown, Texas
The Greater Austin metro area has seen a massive spike in population over the last decade, ranking No. 1 for population growth out of all 50 cities and metropolitan areas we analyzed. Tech companies and transplants from California’s Silicon Valley have been famously relocating to Austin for years, but the city’s growth has been fueled by movers from all across the country.
The demand for housing in Austin is high, and in September of this year, rent prices had surged more than any other tech hub in the country. Austin is one of the top destinations for migrating talent, and according to 2019 Austin Chamber data, 66% of residents lived somewhere else a year earlier — making the area ideal for rentals.
- Best place to invest index score: 80.8
- Median purchase price: $360,100
- Median rental listing price: $1,476
- Rental listing price growth: 1.1%
7. Denver-Aurora-Lakewood, Colorado
Another rapidly-growing region, the Denver metropolitan area has seen an increase in population, cost of living, and rent prices. With its close proximity to Rocky Mountain National Park and the vibrant neighborhoods of Denver, the area offers a mix of outdoor recreation and city culture that attracts newcomers from around the U.S.
According to RentCafe, 51% of homes in Denver are renter-occupied, and the metro area ranked No. 4 on our list for best rental income growth.
- Best place to invest index score: 80.7
- Median purchase price: $374,400
- Median rental listing price: $1,712
- Rental listing price growth: 4.7%
8. Atlanta-Sandy Springs-Roswell, Georgia
Population growth, job growth, and affordability have helped the real estate market in metropolitan Atlanta thrive. While the demand for housing in metro Atlanta is high, the supply is low — especially for single family homes. Within the city of Atlanta itself, Zumper reports that 50% of residents rent their homes, with Gen Z and millennials making up over half of the city’s population.
According to Realtor.com®’s 2022 Housing Forecast data, price growth in the Atlanta metro area is projected to be 3.5% year-over-year — slightly higher than the national average. Metro Atlanta ranked No. 6 for best investment appreciation and No. 9 for best rental income growth.
- Best place to invest index score: 80
- Median purchase price: $269,000
- Median rental listing price: $1,364
- Rental listing price growth: 3.3%
9. Boston-Cambridge-Newton, Massachusetts/New Hampshire
Coming in at No. 9, Greater Boston is one of the pricier areas on our list to buy and rent. With an economy driven by higher education (Boston College, Harvard, and MIT are just a few of the notable universities in the area), healthcare, and finance, Greater Boston is home to both students and affluent professionals looking to rent.
Even as the pandemic drove renters out of major cities (Boston included), data shows many renters are returning to tech-based cities and rents are increasing once again. Boston rents are up 12.9% year-over-year, according to Realtor.com® November rental data, and the Greater Boston area ranked No. 4 for best rental income and No. 2 for best rental income growth.
- Best place to invest index score: 80
- Median purchase price: $1,012,400
- Median rental listing price: $3,491
- Rental listing price growth: 7.7%
10. Riverside-San Bernardino-Ontario, California
Referred to as the “Inland Empire,” the Riverside-San Bernardino-Ontario metro area is a hub for transportation and manufacturing. But its open space, proximity to the mountains, and more affordable housing options have attracted renters and homebuyers from the Los Angeles and Orange County areas — especially during the pandemic.
Like many other cities, the Riverside area saw surging rent increases in the last few months of 2021 — up 39% year-over-year and ranking No. 4 for metros with the fastest-growing rent in November, based on Realtor.com data.
- Best place to invest index score: 79
- Median purchase price: $392,000
- Median rental listing price: $1,383
- Rental listing price growth: 2.9%
Manage Rental Properties With Avail
No matter how big or small your rental portfolio, Avail can help make the renting process simple for landlords and their tenants. Find and screen tenants, create state-specific lease agreements, collect rent online, manage maintenance requests, and more — all in one place, free for unlimited rental units.
Create an account or log in to get started.
Metrics used: Data is based on Realtor.com®’s 2021 median purchase price and annualized growth, Avail 2019-2021 median rental listing prices with annualized growth, 2018-2019 U.S. Census population growth data, and Avail data showing the share of tenants who paid their rent by the end of each month in 2021.
The analysis was conducted based on the 50 largest metro areas in the U.S. Rankings for index score, investment affordability, investment appreciation, rental income, rental income growth, population growth, and share of on-time rent payments were determined using the above data.
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After a year of rent lows, highs, and lingering affordability problems from the pandemic, 2022 is expected to bring new profitability and challenges to the rental market, based on the 2022 Realtor.com® Housing Forecast and Avail rental market data.
We’ve outlined seven rental market predictions that renters, landlords, and real estate investors can expect to see in 2022.
1. Rent Prices Will Increase in a Competitive Market
Rent prices experienced major declines in some areas at the start of the pandemic, but rents have slowly returned to pre-pandemic levels in some markets and come soaring back in others. Recent data shows rents in major tech cities quickly rebounding as renters move back and steep rent growth in cities across the country.
Even though below-average rent growth continued into 2021, an increasing demand for rentals combined with low rental vacancy rates is expected to fuel the rental market heading into 2022. Realtor.com® economists predict a 7.1% growth in national rent in the next 12 months, along with a much more competitive rental landscape.
2. There Will Be a Higher Demand for Rentals
Similar to rent prices, Realtor.com® predicts that home prices and mortgage rates will keep rising in 2022. An increasingly competitive homebuying market means that those who can’t compete for a home will likely continue to rent, increasing the demand for rental units.
Realtor.com® economists also note that those who moved in with family during the pandemic may be ready to move out and resume renting, forming a “new household” and adding to the demand for rental properties.
3. Renting Could Become Less Affordable Than Homebuying
Rent growth is predicted to outpace home sales price growth in 2022, and in some markets, renting may become the less-affordable option. In July of 2021, Realtor.com® found that first-time homebuying was more affordable than renting in almost half of the nation’s largest markets. As rent prices surge, a similar trend may take hold in 2022.
It’s important to note that while homebuying may be more affordable than renting in some U.S. markets, renters may not be able to compete for a home in the 2022 housing climate, leaving them to contend with high prices of rent and more limited rental housing options.
4. Renters Will Be Looking for Larger Units
As the pandemic spurred the work-from-home era, renters sought out larger spaces to function as both a home and an office. And while some renters are going back into an office, the demand for larger rental units with more space hasn’t gone away. RentCafe reported that 36% of U.S. cities are building larger apartments and 2021 Realtor.com® rental data shows that larger unit rents have gained the most momentum towards pre-pandemic levels.
While the demand for larger units is partially driven by those with the financial ability to pay for more space, Realtor.com® notes that some renters may be moving into a larger space with roommates (versus paying for a studio or one bedroom) to save money on rent as the economy continues to recover.
5. Landlords May Raise Rent or Sell to Recoup Pandemic Losses
Landlords were faced with limited options to offset missed rent during the pandemic. While emergency rental assistance was implemented to help tenants cover rent and utility payments, Avail found that Emergency Rental Assistance programs are failing to help landlords and renters due to unclear eligibility guidelines.
To help recoup lost rental income, landlords may evict renters who are struggling with payments or sell their rental properties altogether. September 2021 data from Avail revealed that 23% of landlords surveyed were already considering pursuing an eviction, while over half of landlords surveyed would push for eviction if their tenants missed one or two months of rent in the future.
On the other hand, if landlords choose to sell their rental properties rather than evicting tenants to raise rent, the supply of rental housing could be further reduced.
6. Real Estate Investors Will Continue to Benefit
Renters may be up against increasing rent prices and a more competitive rental market, but property investors are expected to see return on existing investments in 2022. Rising home prices paired with increasing rent puts real estate investors in a promising position and may encourage some investors to add new properties to their portfolios, even as mortgage rates increase.
7. Rising Rents and Low Housing Supply May Hurt Renters Recovering From the Pandemic
In contrast, renters across the country continue to struggle financially. According to Avail data, 47% of renters surveyed had missed at least one rent payment since the start of the pandemic. As Emergency Rental Assistance programs fail to work as intended and eviction is once again a possibility for landlords, renters who can’t afford their rent (or can’t afford to pay back missed rent) may find themselves in a difficult position.
If these renters are evicted or their landlords decide to sell, renters who are already struggling financially face a competitive rental market with potentially higher rent prices.
To stay up to date with rental market trends and news, join our special reports mailing list or subscribe to our newsletter below.
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Cities across the country are seeing surging increases in rent prices that are making up for lost time and major declines due to the pandemic. According to Realtor.com®’s September rental data, rent prices are increasing across the largest 50 metropolitan areas and tech hubs, bringing median rent to $1,654 and translating to renters paying an extra $198 per month.
Here’s a look at where rent prices stand going into the winter months and which areas are experiencing the biggest increase in rent overall.
Two-Bedroom Units Have the Fastest-Growing Rent Prices
Based on Realtor.com®’s most recent data, two-bedroom units have seen the biggest increase in rent price compared to one-bedroom and studio units. Pandemic-inspired preferences for more space coupled with renters’ increasing desire for larger homes has helped the median monthly rent for two-bedroom units increase by $233 — bringing the national median rent to $1,855, about 14% higher than last year.
Due to a demand for more space, 36% of cities are building larger apartments, with spaces increasing by an average of 50 square feet.
While rent prices for two-bedroom units have experienced the biggest increase nationally, studio and one-bedroom units have driven the most growth in tech cities like San Francisco and New York, where more young and single workers are opting for smaller units due to higher than average two-bedroom unit prices.
The median rent price for a one-bedroom increased by $185 a month to reach $1,542 nationally, with studios increasing by $137 to reach $1,351.
Rents in Major Tech Cities Are Rebounding as Renters Move Back
The pandemic caused renters to leave major cities in search of more affordable and spacious housing, but those same renters are now returning as more cities and company offices reopen. While rents in major cities declined as much as 15% throughout the pandemic due to a lack of demand, rent prices have bounced back in tech cities like Austin, San Jose, and Seattle.
Rent prices in these major cities are up by 7.6% on average, which is the fastest growth rate on record. Four of the 10 major tech counties (in Los Angeles, Seattle, Denver, and Austin) reached their highest rents to date with no clear signs of slowing down anytime soon, according to Realtor.com®’s analysis.
Tech cities with biggest median rent increases (compared to September 2020):
- Austin, Texas: $1,695 – up 25.6%
- Seattle, Washington: $2,220 – up 17.9%
- Denver, Colorado: $2,034 – up 13.8%
- Santa Clara/San Jose, California: $3,015 – up 10.8%
- San Francisco, California: $3,450 – up 9.5%
Florida Metro Areas Saw the Biggest Rent Increases in the Country
Tech hubs aren’t the only areas seeing notable spikes in rent prices. While many metropolitan regions saw rent hold steady or decline throughout the pandemic, metro areas across the U.S. have experienced surges in rent compared to September 2020. National rent increased by 13.6% year over year, and according to Realtor.com®, is growing four times faster than rates seen just before the pandemic hit the U.S.
Florida saw the two highest rent increases by metro area in the country, with the Tampa-St. Petersburg-Clearwater metro area increasing by 33.3% year over year and the Miami-Fort Lauderdale-West Palm Beach metro area increasing by 31.6% year over year.
States with highest rent increases by metro area (compared to September 2020):
- Florida (Tampa-St. Petersburg-Clearwater): $1,800 — 33.3% increase
- Florida (Miami-Fort Lauderdale-West Palm Beach): $2,500 — 31.6% increase
- California (Riverside-San Bernardino-Ontario): $2,245 — 26.5% increase
- Arizona (Phoenix-Mesa-Scottsdale): $1,700 — 26.4% increase
- Nevada (Las Vegas-Henderson-Paradise): $1,548 — 25.9% increase
As Rents Increase, Rental Housing Uncertainty Looms
As rents reach record highs in areas across the country, many renters are still faced with housing uncertainty as a result of the pandemic. According to recent Avail data, Emergency Rental Assistance programs are failing to help renters and landlords as intended, and renters face an increased chance of being evicted from the homes they are already having trouble affording.
To stay up to date with national rent data, rental market news and trends, and the state of the rental market as it recovers from the pandemic, join our special reports mailing list or sign up for our newsletter below.
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