With increasing investment in multifamily construction, renters are struggling to find a place to call home with the hard-to-find amenities that many deem necessary. There appears to be a substantial gap between amenity supply and demand on market creating a rental mismatch.
A new study from Apartment List analyzed user and property data from 70 metropolitan areas. From the findings, renters in 59 of the 70 metros struggle to find the amenities they want, pay extra for many they don’t want, or in the worst cases, both lack the amenities they want and pay for those they don’t.
According to the report, in-unit laundry is the most in-demand and difficult to find amenity. 53% of renters are looking for it and only 13% of properties supply it. The below chart compares the share of properties that have each amenity to the share of users that report a preference for that amenity. Air conditioning, along with in-unit laundry, top the list of most sought after difficult to find amenities. On the other hand, pet-friendly apartments are heavily oversupplied.
A Rental Mismatch
According to the report, demand for amenities vary location to location. Renters in more affordable markets usually have higher demands for their amenities since they can afford to pay up, while renters in the priciest markets are more willing to settle for less. This holds true in San Diego, as the data shows that renters in the area tend to be less demanding than most, with renter demand below the national average for 7 of the 10 amenities we analyzed. In-unit laundry and air conditioning are still the two most in-demand amenities, but are even more under supplied in San Diego.
Renter preferences vary across the country, but the relationship between affordability and renter demand holds true. Based on the study, San Antonio renters hold the crown as being the most demanding renters. Given the Texas heat, many San Antonio renters are looking for air conditioning and pools. San Antonio is also one of the nation’s most affordable large cities, with a median two-bedroom rent of $1,050, which may explain why the area’s renters willingness to splurge on higher-end amenities
In contrast, the New York City metro has some of the nation’s least picky renters. New York is the nation’s second most expensive rental market with a median two-bedroom rent of $2,470. With sky high rent prices, it makes sense that NYC renters are willing to sacrifice amenities in an attempt to keep their living costs lower.