Understanding Tenant Preferences: What Renters Look for in Multifamily Properties with Drake Orser
In today’s dynamic rental market, understanding what tenants look for in multifamily properties is crucial for both property owners and real estate professionals. Drake Orser, Associate at Essex Realty Group, explains the current demands of the market and offers valuable insights into what renters are prioritizing in their search for the perfect apartment. From flexible living spaces to essential amenities and location preferences, this blog post covers key aspects that are shaping the rental landscape in Chicago today.
Q: Can you give us a significant trend shaping the rental market in Chicago these days?
A: Absolutely. Chicago’s rental market has seen some interesting trends in recent years. One notable shift is the growing demand for more flexible living spaces. It’s less about total square footage and more about efficient layouts. While unit sizes haven’t necessarily increased, renters highly value the efficient use of space and versatile floor plans. According to the National Multifamily Housing Council (NMHC) and Grace Hill 2024 Renter Preferences Survey, 65% of renters state flexible space is important to very important.
Q: What amenities or features do renters really want in their apartments?
A: In-unit laundry almost always tops the priority list. According to Apartments.com, five key features stand out as essential for renters: in-unit laundry (75%), central heat & air conditioning (69%), dishwasher (46%), balcony or private outdoor space (45%), and pet-friendly features (41%). With renters spending more time at home, noise reduction has also become a top priority, with respondents prioritizing soundproof walls and noise-reducing windows.
Q: How important is location when renters are choosing a place?
A: While remote work has changed commuting patterns, proximity to work and public transportation is still a big deal for renters. The NMHC survey found that nearly a third of renters still consider proximity to work a crucial factor, with 1 in 5 renters also interested in proximity to public transportation and local points of interest. In our city, areas like the West Loop and neighborhoods along the “L” train lines remain popular because of this. Proximity to public transit is important not just for work commutes but also for social events and recreation.
Q: What safety measures are important to renters in multifamily properties?
A: Safety is a top priority for renters. Practical safety measures such as secure entry systems, well-lit common areas, and surveillance cameras are highly valued. According to Apartments.com, over half of renters placed safety and security in their top three considerations when looking for an apartment.
Q: How are renters finding their next apartment?
A: Internet sites and apps are the primary tools for apartment searches these days, with 72% of renters stating this as their main search method, according to Apartments.com. Additionally, 69% rely on property ratings and reviews when deciding between options. Interestingly, nearly 70% of renters still prefer a guided tour with a representative from the building, though virtual floor plans and self-guided tours are gaining popularity.
Q: How do different property classifications (A, B, C, D) affect tenant preferences?
A: Understanding property classifications is vital for meeting tenant needs. Class A properties, which are often newer luxury buildings, attract renters who value high-end amenities and are willing to pay a premium. Class B properties, which may be slightly older but well-maintained, appeal to renters seeking a balance of quality and affordability. Class C properties, older and in less desirable locations, tend to attract budget-conscious renters. Class D properties, usually in need of significant repairs and potentially located in less favorable areas, typically appeal to those with the tightest budgets.
Q: How strong is the current rental market in Chicago?
A: The rental market in Chicago is very strong right now. Rents are at some of the highest levels seen in recent years. A 2023 report by CoStar showed that Chicago’s apartment rent growth surpassed the national average for the first time in over a decade. This growth is driven by a combination of high demand and limited supply, particularly in desirable neighborhoods. Additionally, a report by Apartment List indicated that Chicago’s median rent growth this past month (May 2024) ranked 7th among the nation’s 100 largest cities.
Sources:
• National Multifamily Housing Council Resident Preferences Survey, 2023
• Apartments.com Survey, 2023
• CoStar Report, 2023
• Apartment List, 2023