SAN FRANCISCO--(BUSINESS WIRE)--Overall apartment resident satisfaction had previously experienced three years of stability until this period's spike, according to Kingsley Associates' latest analysis. For the 12-month period ending June 30, 2014, 76.2 percent of apartment renters rated their overall satisfaction as "good" or "excellent," a proportion that had previously remained virtually unmoved for over three years. By contrast, likelihood of renewal has steadily decreased since early 2010 amid aggressive rent increases and has now reached an all-time low. For the most recent quarter, only 53.8 percent of residents indicated that they "probably would" or "definitely would" renew their lease, down 1.0 percent from the prior period and 7.0 percent since Q3 2011.
"Apartment renters continue to report high levels of satisfaction with their apartment homes and communities, but are clearly keeping their options open," says David C. Smith, executive vice president and COO, Kingsley Associates. "When we take a closer look, specifically at the major markets in the United States, renewal intent declined or remained steady in ten of the eleven metros we surveyed, with Boston being the only exception to that trend."
Compared to one year ago, apartment floor plan was more frequently cited as a lease renewal factor by renters. Among renters likely to renew their lease, location was significantly more important than rental rate. 72.6 percent of residents identified location as a key contributing factor while only 46.5 percent mentioned that they perceived rental rates at their community were at or below market price. Renters who are unsure of their renewal intentions were more likely than in the past to cite that moving is simply too much trouble. While only 14.3 percent of unsure residents cited this as a decision factor one year ago, 23.1 percent stated that they now consider it a top factor in the renewal decision process.
These insights only scratch the surface of the full analysis. The comprehensive results are available in Kingsley Associates' Q2 2014 Multifamily Trends.
Kingsley Associates surveys approximately 2.7 million apartment units annually on behalf of its clients. The findings outlined above are based on survey responses received between July 1, 2013 and June 31, 2014.
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The most successful firms in real estate rely on Kingsley Associates for cutting-edge business intelligence solutions. Kingsley Associates is the leader in resident satisfaction surveys, client studies, strategic consulting and organizational benchmarking. To learn more, please visit our website www.kingsleyassociates.com, our blog www.kingsleyinsight.com or follow us on Twitter @Kingsley_Assoc.