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How Many Home Shoppers are Renters?

It seems renters may finally be setting their sights on homeownership if a new analysis released on Thursday rings true. In the first quarter of this year, the share of home shoppers who were either non-homeowners or renters rose noticeably over recent years. But what could it mean for investors and lenders? And will the increase continue? 

Renters are finally setting their sights on homeownership, according to an analysis released by credit reporting agency TransUnion on Thursday. In Q1 of 2017, a whopping 55 percent of all home shoppers were non-homeowners or renters.

The share of renter home shoppers represents a marked uptick over previous years. In Q1 2016, half of all shoppers were non-homeowners or renters. In the same period 2015, only 45 percent were.

According to Mike Doherty, Senior Vice President of Rental Screening Solutions at TransUnion, this trend will likely continue over the coming years—and multi-family property owners should brace for the impact.

“The rental market has seen sustained growth for the last several years, but occupancy rates have flattened from their peak in the second quarter of 2016,” Doherty said. “This new uptick in mortgage shopping could be a precursor to further declines in occupancy, which would impact rent growth—and ultimately, revenue—for multifamily property owners. In anticipation of this potential shift, owners and property managers should be offering the right amenities and programs designed to attract renters.”

Rising interest in homeownership was particularly noticeable amongst millennials who, according to TransUnion, comprised 29 percent of all home shoppers in the first quarter. That’s up from 28 percent in 2016 and 27 percent in 2015.  Read More