Young Renters Making Trade-Offs in Response to Inflation

Young American renters are already facing a historic shortage of rental housing and are now encountering inflation in the form of higher rents and higher prices of everyday necessities.

Grubb Properties’ survey of 1,000 renters between the ages of 22 and 35 found that these young renters are taking action and making trade-offs as necessary to address this economic reality.

Of the young renters surveyed by Wakefield Research, 51% reported they had experienced a rent hike in the past year, with an average increase of 30%. Of these renters, less than 7% said they had the resources to cover the increase without changing their lifestyle.

The remaining 93% planned to take or have already taken action to address higher rents, with most taking multiple steps. That included cutting back on extra purchases (54%), looking for a new job or side gig (39%) and looking for a new place to live (34%).

“Young American renters are contending with an extremely supply-strapped housing market, which has made it significantly more difficult to find accessible apartments in desirable locations,” said Todd Williams, chief investment officer at Grubb Properties.

When asked to rank their financial concerns, the rising prices of goods were cited by 30% of respondents as their top financial worry, followed by rent increases (25%), lack of savings (20%), job security (15%) and paying back student loans (10%).

Green, urban living still appeals

There were some clear priorities where these renters were much less willing to compromise. More than four out of five (82%) said that energy-efficient and environmentally friendly buildings are at least somewhat influential in their decisions on where to rent, with 40% stating they are very or extremely influential.

Similarly, 64% at least somewhat agreed that proximity to public transportation is important in the rental decision process. Three out of four (75%) at least somewhat agreed that living near shops, restaurants and entertainment is important to them.

And most young renters are not willing to give up their pets. Of the 74% of respondents who own a pet, most (58%) agreed that no matter how much rent increases, they would never consider a pet-free building.

The need for essential housing

Nearly two-thirds (64%) of the renters surveyed said it would be at least somewhat hard to find an apartment in their price range if they had to move today.

At Grubb Properties, we are focused on addressing the U.S. housing shortage by bringing new communities to some of the country’s most supply-constrained areas. Our emphasis on essential housing, geared to people earning 60% to 140% of the local area median income, is helping make quality urban housing accessible to many more renters.

“We believe that quality urban housing should be accessible to all, and we are committed to delivering essential housing through our Link Apartments communities,” said Williams.

To download an executive summary of the results from the State of the Young American Renter Survey, click here.