Source: Kingsley Associates / #Apartments #Residents
SAN FRANCISCO, CA - As has been the case for nearly two years now, roughly three quarters (75.9 percent) of apartment residents rated their overall satisfaction as "good" or "excellent" for the four quarters ending March 31, 2013, according to Kingsley Associates' latest resident survey data. This proportion has now remained within +/- 0.3 percentage points of 76 percent since Q2 2011.
In contrast to this stability in renter satisfaction, renewal intent continued its steady decline during the quarter, with 56.1 percent of residents indicating they "probably would" or "definitely would" renew their leases. Likelihood of renewal has decreased 5.3 percentage points since Q2 2011, the beginning of the period of stable overall satisfaction. Across major US markets, only in Los Angeles has resident renewal intent increased from a year ago.
"Today's apartment renters are fundamentally different than they were a few years ago," says John Falco, Principal, Kingsley Associates. "They are less price-sensitive, but they are also more demanding of excellence because more see themselves as long-term renters."
Data from residents supports what Falco suggests. Over the past year, items such as rental rate and home purchase have been cited less frequently as renewal decision factors among residents not likely to renew. With vacancy rates dipping below 5 percent nationally, this is likely more good news for owners of multifamily properties. On the other hand, more residents are citing community management, community appearance and apartment features/finishes than a year ago, suggesting higher expectations for the apartment living experience itself.
These findings and more are available in Kingsley Associates' Q1 2013 Multifamily Trends.
Kingsley Associates surveys approximately 2.2 million apartment units annually on behalf of its clients. The findings outlined above are based on survey responses received between April 1, 2012 and March 31, 2013.