Zillow reported that its Observed Renter Demand Index rose 19.2% year over year in September as high borrowing costs push would-be buyers to keep renting. Demand for single-family rentals jumped 21.6%, more than double the 10.1% rise for multifamily, with San Jose, San Francisco, Austin, Miami, and Phoenix leading all metros.
Why it matters to multifamily marketers
Strong overall demand is good news for lease-ups, but the much faster pull toward single-family rentals is a reminder that apartment marketers in high-cost metros are competing with houses, not only other buildings, so lean on amenities, service, and community that a rented house cannot match.