Young adults are renting longer than ever before, and more rentals are being added to traditional MLS systems. RentSpree, and Rental Beast were both heavily involved in this transition. They presented at the 2022 RESO spring conference. WATCH VIDEO(20:18 minutes).
WATCH VIDEO(30:34 minutes)
These were the key takeaways from both sessions:
The Rental Market
The largest generation ever, the millennials, is six to seven years away home ownership.
Wages have increased by 52% over the past 30 year, but home values have increased 260%. This makes homeownership more difficult for younger buyers, and renters are more likely to stay with them for longer periods of time than in previous generations.
Nearly 40% of the U.S. populace rents, with 60% in major metropolitan areas.
Today, approximately 113 million Americans rent.
Millennials make up 40% of today’s homebuyers and account for 65% renters.
Opportunities for Change
More than 60% of the rentals handled by agents do not end up in MLS.
Over 3,000,000 rentals are never entered into the MLS.
Commissions on rentals can range from $2.4 billion to $12 billion annually.
A survey of 2021 found that 81.6% of renters plan to move in 2022. 88% said they would reuse their agent or refer them. Nearly 42% of renters planned to buy a house.
Many owner-sourced rentals lack consistent data guidelines. The RESO Rental Subgroup was established to address this problem.
What’s Next?
It is important to simplify fields in today’s complex, time-consuming forms.
The interfaces used to input rental information should be improved.
A better way for the industry to ensure accurate and current listings is needed.
MLSs that require rental listings be submitted to the MLS have almost three times as many rental listings per member. Therefore, MLSs should consider requiring rental input to ensure they are the center of rental activity.
Participants in the Rental Subgroup reported that approximately 40% of submitted fields did not match RESO Data Dictionary values. No participants were aligned 100%.
For inclusion in the Data Dictionary, it is important to reduce and simplify the number of rental fields.
RESO supports standardization of clear, simple and uniform rental fields in its Data Dictionary as part of its overall mission. RESO has a long history of standardizing all aspects of real property. The first major step was property information for residential listings for purchase. We have also included fields in the Data Dictionary to provide office information, media details, Internet tracking, agents teams, and many other useful information.
We are currently working on common fields for appraisals and new construction, commercial real property, offer management, and commercial real estate. The Data Dictionary will soon include recent additions to the Data Dictionary that relate to transaction management, locking boxes, showings, and associations.
The 2022 RESO Fall Conference will be held in Sarasota (Florida), October 25-27.