GITNUX REPORT 2024

Key Statistics on U.S. Property Rental Trends Revealed

Inside the Rental Market: Millennials Dominate, Property Managers Optimistic, and Affordability a Key Concern.

Author: Jannik Lindner

First published: 7/17/2024

Statistic 1

The average rental property generates a 9.4% return on investment

Statistic 2

The average annual maintenance cost for a rental property is 1-2% of the property value

Statistic 3

The average rental property appreciation rate is 3-5% per year

Statistic 4

The average rental property cash flow is $233 per month

Statistic 5

The average rental property insurance cost is $250 per year

Statistic 6

The average rental property cap rate is 4-10%

Statistic 7

The average rental property mortgage interest rate is 0.5-0.75% higher than owner-occupied properties

Statistic 8

The average rental property tax rate is 1.1% of the property value

Statistic 9

The average rental property depreciation period is 27.5 years

Statistic 10

The average length of a residential lease is 12 months

Statistic 11

The average time to evict a tenant is 3-4 weeks

Statistic 12

The average rental vacancy rate in the U.S. is 5.8%

Statistic 13

The global vacation rental market size was valued at $87.09 billion in 2019

Statistic 14

58% of property managers expect to raise their rental rates in the next year

Statistic 15

The average time to rent out a property is 38 days

Statistic 16

35% of rental properties are single-family homes

Statistic 17

The average rental property vacancy rate is 7%

Statistic 18

44% of landlords manage their properties themselves

Statistic 19

72% of renters say they value a responsive property manager

Statistic 20

The global property management market size was valued at $14.47 billion in 2020

Statistic 21

77% of property managers use property management software

Statistic 22

The average property manager oversees 200 units

Statistic 23

The average property manager earns $58,760 per year

Statistic 24

The average property management fee is 8-12% of monthly rent

Statistic 25

The average property manager handles 30-40 maintenance requests per month

Statistic 26

The average property manager spends 4 hours per week on accounting tasks

Statistic 27

The average property manager spends 6 hours per week on leasing activities

Statistic 28

The average property manager spends 5 hours per week on maintenance coordination

Statistic 29

The average property manager spends 3 hours per week on tenant screening

Statistic 30

The average rent in the United States is $1,124 per month

Statistic 31

The average security deposit for a rental property is equal to one month's rent

Statistic 32

42% of renters are cost-burdened, spending more than 30% of their income on rent

Statistic 33

20% of renters are behind on their rent payments

Statistic 34

The average cost of tenant turnover is $1,750

Statistic 35

The average cost to prepare a rental property for a new tenant is $1,000

Statistic 36

36% of U.S. households rent their homes

Statistic 37

Millennials make up 45% of all renters in the U.S.

Statistic 38

52% of renters are under the age of 30

Statistic 39

The average age of a first-time renter is 26

Statistic 40

48% of renters live in properties with 5 or more units

Statistic 41

40% of renters live in properties built before 1970

Statistic 42

25% of renters have a bachelor's degree or higher

Statistic 43

38% of renters have children under 18 living with them

Statistic 44

45% of renters live in suburban areas

Statistic 45

22% of renters are single parents

Statistic 46

33% of renters work in service occupations

Statistic 47

33% of renters move every year

Statistic 48

71% of renters have pets

Statistic 49

64% of renters plan to buy a home in the future

Statistic 50

The average tenant stays in a rental property for 27.5 months

Statistic 51

68% of renters have renters insurance

Statistic 52

The average credit score of approved rental applicants is 638

Statistic 53

62% of renters prefer online rent payments

Statistic 54

43% of renters have lived in their current rental for 5 years or more

Statistic 55

82% of renters say that affordability is their top priority when choosing a rental

Statistic 56

53% of renters moved due to housing cost concerns

Statistic 57

67% of renters would pay more for eco-friendly features

Statistic 58

59% of renters prefer properties with in-unit laundry

Statistic 59

72% of renters say they value properties with high-speed internet

Statistic 60

31% of renters have moved within the past year

Statistic 61

55% of renters say they would pay more for smart home features

Statistic 62

68% of renters say they value properties with good soundproofing

Statistic 63

57% of renters say they value properties with outdoor space

Statistic 64

64% of renters say they value properties with energy-efficient appliances

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Summary

  • 36% of U.S. households rent their homes
  • The average rent in the United States is $1,124 per month
  • Millennials make up 45% of all renters in the U.S.
  • The average rental vacancy rate in the U.S. is 5.8%
  • 52% of renters are under the age of 30
  • The average length of a residential lease is 12 months
  • 33% of renters move every year
  • 71% of renters have pets
  • The global vacation rental market size was valued at $87.09 billion in 2019
  • 58% of property managers expect to raise their rental rates in the next year
  • The average security deposit for a rental property is equal to one month's rent
  • 42% of renters are cost-burdened, spending more than 30% of their income on rent
  • The average rental property generates a 9.4% return on investment
  • 64% of renters plan to buy a home in the future
  • The average time to rent out a property is 38 days

Renters rejoice, for you are part of the 36% of U.S. households who have embraced the nomadic lifestyle! With millennials leading the charge into the rental market at 45%, and a rental vacancy rate of 5.8%, theres no shortage of options for the under-30 crowd. But beware, as 42% of renters are cost-burdened beyond comfort, while property managers eagerly eye a 58% hike in rental rates. So, as you navigate the rental landscape with your furry companions (yes, 71% of renters have pets!), remember that the average rental property generates a 9.4% ROI, offering both profit and pitfalls in this dynamic housing market.

Investment

  • The average rental property generates a 9.4% return on investment
  • The average annual maintenance cost for a rental property is 1-2% of the property value
  • The average rental property appreciation rate is 3-5% per year
  • The average rental property cash flow is $233 per month
  • The average rental property insurance cost is $250 per year
  • The average rental property cap rate is 4-10%
  • The average rental property mortgage interest rate is 0.5-0.75% higher than owner-occupied properties
  • The average rental property tax rate is 1.1% of the property value
  • The average rental property depreciation period is 27.5 years

Interpretation

In the labyrinth of property investments, navigate through the numbers like a seasoned cartographer. A rental property voyage promises a rollercoaster of returns, from the thrilling 9.4% ROI to the occasional bumps of annual maintenance costs lurking at 1-2% of the treasure map. Sail through the bewitching waters of property appreciation rates, where the winds of 3-5% blow favorably. Watch your ship's cash flow dance merrily at $233 per month, but beware of storms on the horizon in the form of insurance costs and fluctuating cap rates. Brace yourself against the tides of mortgage interest rates higher than the glamorous owner-occupied realm, while navigating the treacherous tax rate reefs at 1.1%. And if you’re feeling the weight of the anchor called depreciation period, remember - in this adventure, patience is the true compass leading to wealth.

Lease Terms

  • The average length of a residential lease is 12 months
  • The average time to evict a tenant is 3-4 weeks

Interpretation

These property rental statistics paint a vivid picture of the delicate dance between landlord and tenant, where a seemingly solid 12-month commitment can quickly unravel into a mere 3-4 week countdown to eviction. It's a reminder that in the realm of real estate, the line between cozy home and legal battleground can be as thin as the paper the lease is printed on. So, while a year may seem like a substantial chunk of time in the rental world, it's always wise to remember that in the grand scheme of things, a month is all it takes to turn a tenant's dream into a landlord's nightmare.

Market Trends

  • The average rental vacancy rate in the U.S. is 5.8%
  • The global vacation rental market size was valued at $87.09 billion in 2019
  • 58% of property managers expect to raise their rental rates in the next year
  • The average time to rent out a property is 38 days
  • 35% of rental properties are single-family homes
  • The average rental property vacancy rate is 7%

Interpretation

In a world where rental properties reign supreme, the statistics paint a vibrant picture. With a national vacancy rate of 5.8%, it seems there's always a cozy spot available somewhere in the U.S. for the discerning renter. Globally, the vacation rental market is no small player, boasting a hefty $87.09 billion valuation in 2019. Looking forward, it appears 58% of property managers are gearing up to play Monopoly with their rental rates, set to increase in the coming year. Patience is a virtue for landlords, as the average time to rent out a property stands at 38 days—just enough time to pop some popcorn and watch anxiously by the phone. And for those seeking a quieter abode, 35% of rental properties offer the charm of a single-family home. With an average vacancy rate of 7%, it seems the rental market is a bustling neighborhood, always ready to welcome its next tenant.

Property Management

  • 44% of landlords manage their properties themselves
  • 72% of renters say they value a responsive property manager
  • The global property management market size was valued at $14.47 billion in 2020
  • 77% of property managers use property management software
  • The average property manager oversees 200 units
  • The average property manager earns $58,760 per year
  • The average property management fee is 8-12% of monthly rent
  • The average property manager handles 30-40 maintenance requests per month
  • The average property manager spends 4 hours per week on accounting tasks
  • The average property manager spends 6 hours per week on leasing activities
  • The average property manager spends 5 hours per week on maintenance coordination
  • The average property manager spends 3 hours per week on tenant screening

Interpretation

In the dynamic world of property management, the statistics paint a picture of juggling act between landlords and renters. It seems that while nearly half of landlords take the DIY route, a whopping three-fourths of tenants appreciate a quick-to-respond property manager. With a global market size worth billions, it's no surprise that most property managers are turning to software to streamline their workload, which includes overseeing hundreds of units and handling a myriad of maintenance requests every month. Who knew that behind the scenes of the average property manager's annual salary lies a balancing act of accounting tasks, leasing activities, maintenance coordination, and tenant screening? It's a tough job, but someone has to ensure that the rental ship sails smoothly!

Rental Costs

  • The average rent in the United States is $1,124 per month
  • The average security deposit for a rental property is equal to one month's rent
  • 42% of renters are cost-burdened, spending more than 30% of their income on rent
  • 20% of renters are behind on their rent payments
  • The average cost of tenant turnover is $1,750
  • The average cost to prepare a rental property for a new tenant is $1,000

Interpretation

These rental statistics paint a picture of a housing market that seems to have watched one too many reality TV shows on drama and unpredictability. With the average rent in the US hovering around $1,124 per month, it's no wonder that 42% of renters find themselves tightrope-walking their budgets, precariously spending over 30% of their income on rent. Adding to the theatrics, 20% of renters are backstage, behind on their rent payments, while the average security deposit and the costs of tenant turnover and preparing a rental property for a new occupant resemble props in a play where the only constant is change. In this symphony of numbers, one thing is crystal clear—the stage is set for both tenants and landlords to carefully choreograph their next moves in this rental tango.

Rental Demographics

  • 36% of U.S. households rent their homes
  • Millennials make up 45% of all renters in the U.S.
  • 52% of renters are under the age of 30
  • The average age of a first-time renter is 26
  • 48% of renters live in properties with 5 or more units
  • 40% of renters live in properties built before 1970
  • 25% of renters have a bachelor's degree or higher
  • 38% of renters have children under 18 living with them
  • 45% of renters live in suburban areas
  • 22% of renters are single parents
  • 33% of renters work in service occupations

Interpretation

In a nation where a significant chunk of the population prefers to rent, the landscape of the typical renter is undergoing a transformation. Millennials are leading the charge, making up nearly half of all renters, with a growing number opting for suburban living and juggling parenthood. The rental market is a colorful tapestry, with young professionals and families alike finding their place in properties ranging from vintage units to larger apartment complexes. As the age of first-time renters drops to 26, it's clear that the rental lifestyle is becoming not just a temporary stop, but a deliberate choice for many, reflecting the changing dynamics of housing in the modern age.

Tenant Behavior

  • 33% of renters move every year
  • 71% of renters have pets
  • 64% of renters plan to buy a home in the future
  • The average tenant stays in a rental property for 27.5 months
  • 68% of renters have renters insurance
  • The average credit score of approved rental applicants is 638
  • 62% of renters prefer online rent payments
  • 43% of renters have lived in their current rental for 5 years or more
  • 82% of renters say that affordability is their top priority when choosing a rental
  • 53% of renters moved due to housing cost concerns
  • 67% of renters would pay more for eco-friendly features
  • 59% of renters prefer properties with in-unit laundry
  • 72% of renters say they value properties with high-speed internet
  • 31% of renters have moved within the past year
  • 55% of renters say they would pay more for smart home features
  • 68% of renters say they value properties with good soundproofing
  • 57% of renters say they value properties with outdoor space
  • 64% of renters say they value properties with energy-efficient appliances

Interpretation

In the ever-evolving landscape of property rentals, statistics paint a lively picture of the modern renter. From the restless souls who change homes like they change hashtags, to the furry companions that rule the roost in 71% of rented abodes, and the dreamers plotting their homeowner status at 64%, there's a diverse cast of characters in the rental market. While the average tenant may stick around for a mere 27.5 months, they're armed with renters insurance and a decent credit score of 638. With a penchant for convenience, 62% opt for online rent payments, but when it comes to longevity, 43% hold on to their rental homes like prized possessions. Guided by the golden rule of affordability (82%), and driven by eco-consciousness (67%), renters today seek value in features ranging from energy-efficient appliances to smart home gadgets, signaling a sophisticated yet grounded cohort that values comfort, sustainability, and a little outdoor space to call their own.

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