A new study by Entrata looks at shifting renter behaviours and patterns over the past year, shedding light on the pandemic’s impact on the Canadian rental market.
Among its findings, Entrata, a maker of multifamily operating systems, revealed that 29 per cent of its 1,000 respondents moved within the last year, while 51 per cent said they planned to move once their current lease was up. Two-thirds of respondents said that renting “fit with their current lifestyle” versus owning a home.
“The last two years have been life-changing for people, industries and businesses across the globe,” said Chris Harrington, Entrata’s chief revenue officer. “Our survey of Canadian renters shows that many have moved to larger spaces to accommodate work from home needs, moved back to hometowns and some even moved to the city to take advantage of lower rental rates. We’re seeing a shift in the industry as renters look for more flexible leasing options and think differently about apartment amenities.”
To rent or buy?
Canadian renters’ plans have changed in recent years, with the majority (two-thirds) stating they are currently satisfied with their renting lifestyle and have no plan to pursue homeownership. Almost half said they will likely stop renting within the next three years in order to buy a home.
A whopping 43 per cent said “the need for more space”, possibly to accommodate ongoing work-from-home needs, is what would drive them to seek new accomodations. The main reason cited for renting vs. owning was cost-related — i.e. the inability to afford a down payment and to maintain a home.
The role of amenities
With more time at home since COVID-19, many Canadian renters are now placing a higher priority on apartment building amenities. Nearly 38 per cent said that on-site amenities are “why they love renting.” The most important on-site amenity for today’s renter is high-speed internet with controlled secure building access, followed closely by in-unit laundry facilities.
Nearly all respondents said they care more about on-site amenities now versus before the pandemic, and 13 per cent said building amenities could “make or break” a rental property.
COVID-19’s impact
An overwhelming majority of respondents who moved in the past year said they experienced moving difficulties due to the pandemic. Top hardships cited were:
- Difficulty finding rental units in the right price range
- Family and friends being unavailable to help with moving
- Not being able to find a rental offering the desired terms
Because of the pandemic, one-third said they would switch to month-to-month payments, including half of millennial respondents and 39 per cent of Gen Z respondents. All tolled, nearly a quarter said their interest in month-to-month rent payments has increased; with nearly half saying “it’s nice to have more financial flexibility” and 37 per cent saying they “like not having to worry about picking a place they’ll be forced to live in for a year.”
