Renters' Renewal Intent Continues Downward Trend 

Apartment resident renewal intent is at its lowest point since 2008, according to Kingsley Associates’ survey results. During the period ending Q3 2011, 60.8 percent of residents surveyed indicated they “definitely” or “probably” would renew their leases. This is the lowest proportion since 60.6 percent in Q4 2008.

The decline in renewal intent comes amid stabilization of a similar trend in overall resident satisfaction. For the period, 76.3 percent of residents reported their overall satisfaction as “excellent” or “good,” up from 76 percent last quarter. A rate of 79.6 percent was reported one year ago.

“Multifamily owners across the country have been pushing for higher rents,” notes David Smith, COO, Kingsley Associates. “Firms that are creating an environment of superior service are able to capitalize the most on the current market by maintaining occupancy despite higher rents.”

Kingsley Associates surveys in excess of 1 million apartment units annually on behalf of its clients. The findings are based on survey responses received between Oct. 1, 2010, and Sept. 30, 2011.

New York continues to lead major markets in resident-renewal intent, though it has decreased somewhat. For the period, 77.6 percent of surveyed residents in New York indicated intent to renew, compared to 78.9 percent last quarter. Washington, D.C., is one of few markets bucking the national trend, though resident loyalty in the market still trails the national average.

Less than 60 percent (59.5) of residents in Washington, D.C., intend to renew, up from 56.9 percent last quarter. As it did in Q2, Chicago leads major markets in overall resident satisfaction, with 86 percent of residents rating their satisfaction level either “good” or “excellent.”

Was this article helpful to you?

Current Rating	0%