Young Renters Having to Make Tradeoffs to Afford Rent

Grubb Properties focuses on addressing the US housing shortage by building new communities in some of the most supply-constrained areas, including Los Angeles, New York, the Bay Area, and Washington, DC.

This gives it unique perspective on the attitudes and behaviors of younger renters, who are already making trade-offs to address inflation and rent hikes and are considering further changes, according to a new survey it conducted.

The company polled 1,000 American renters aged 22-35 to gauge their response to the challenging economic environment.

“We believe that quality urban housing should be accessible to all,” Todd Williams, Grubb’s CIO, said in prepared remarks. “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.”

Survey: Average Rent Hike 30%

Grubb Properties’ emphasis on essential housing, geared to people earning 60% to 140% of AMI showed that 51% of young renters reported they experienced a rent increase in the past year, with an average increase of 30%.

Of these renters, less than one in ten (7%) said they had the resources to cover the increase without changing their lifestyle.

The remaining 93% plan to or have already taken action, most notably cutting back on extra purchases (54%), looking for a new job or side gig (39%), and looking for a new place to rent or live (35%).

• 22% would consider using their credit cards to cover the rent;
• 17% would consider asking a friend or family for help with rent;
• 12% would consider adding a roommate to help defray costs;
• 7% would consider selling their cars;
• 40% say they would move to a smaller, less expensive apartments;
• 36% would pack up and move to a cheaper geographic area; and
• 19%) would consider moving back home with their family members.

Energy Efficiency and Pet-Friendly Important Features

Young renters aren’t willing to compromise on their environmental priorities with 82% agreeing that energy-efficient and environmentally friendly buildings are at least somewhat influential in their decision on where to rent – and 40% stating that they’re extremely or very influential.

They also said they are unwilling to give up their pet. 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, according to the survey.