At Zumper, we are releasing our 5th Annual Tenant Survey 2020 Report. This year we will have 2 parts to our U.S. Tenant Condition Report, which examines the current state of the US rental market and the changing mindset of tenants.
Like last year, you can view / download the full results of our Annual tenant survey 2020 here: https://www.zumper.com/blog/zumper-2020-annual-renter-survey.pdf
In addition, this year we have also created a detailed white paper titled United States Rental Market Analysis 2020, which examines rental prices and migration trends as well as data from our annual survey, the Why behind the data, and you can view / download that here: https://www.zumper.com/blog/zumper-2020-us-rental-market-analysis.pdf
Main results and themes
- The tenants go home with mom and dad. Nearly 50% more renters are returning home with their parents, with Millennials returning home most often, up 75% from the same period last year. 7% more tenants now live with their half in 2020, compared to 2019.
- The American dream of owning a home is dead. 1 in 3 renters believe that the American dream does not involve home ownership, in fact 26% never consider buying a home, and over 50% think now is not the time to buy a home.
- The majority of tenants are under intense financial stress. The tenant unemployment rate was 12.7%, 14% higher than the national unemployment rate. In addition, more than half of renters believe that the US economy is not in good shape.
- Tenants have massively tightened their portfolios. 32% more renters are saving more than 15% of their income this year, while those saving less than 15% are down 13% from a year ago.
- Tenants are moving to cities more than ever. 24.5% of tenants said they have relocated cities in the past year, up 33% from 2019.
- The price gap between expensive and cheaper markets is narrowing. The median price differential between the 8 most expensive cities and the other major cities has narrowed by 33% compared to a year ago.
- Expensive cities are experiencing historic exoduses. There has been a 30% increase over a year ago in the number of Zumper platform users interested in leaving the 8 most expensive cities. Tenants are abandoning these towns in favor of cheaper, often neighboring markets. For example, Bay Area residents are moving to Sacramento, New Yorkers are heading to Newark, and DC tenants are moving to Baltimore.
- The most expensive cities in the country are experiencing the sharpest drop in rents. The 8 most expensive cities in the country saw the biggest drops in rental prices compared to the rest of the country – San Francisco, New York, Boston, Oakland, San Jose, Washington DC, Los Angeles and Seattle. The median price in these 8 cities has fallen by 15% since the start of the year.
Over the next few weeks, Zumper will present in-depth analysis of specific sections of the report. Keep checking the blog for more details.
A total of 14,321 renters aged 18 and over from all 50 US states as well as Washington, DC were surveyed from June to August 2020. The survey was sent to US-based Zumper and PadMapper users. and shared with their family and friends. All responses were collected online, with a monetary incentive the chance to win one of four $ 500 cash prizes. In an effort to minimize sampling bias and improve the representativeness of the U.S. tenant population, survey responses were calibrated on several tenant characteristics to better match the makeup of the U.S. tenant population such as estimated in the 2019 American Community Survey conducted by the US Census Bureau. . Responses were calibrated for tenant’s age, race / ethnicity, gender, and education level using the sweep algorithm used by American National Election Studies.
Zumper aims to make renting an apartment as easy as booking a hotel. With more than 15 million visits each month, Zumper’s free online and mobile rental search marketplace has grown into the largest startup in the industry. San Francisco-based Zumper has 200 employees across the United States and acquired PadMapper in 2016. The company has raised a total of $ 140 million in funding. Learn more at Zumper.com