Renter insights
As the nation’s largest rental rewards and credit building platform, Piñata has unprecedented insight into the state of mind of our renter network. In our latest survey, we asked more than 14,000 renters about their financial health, credit score, loan history, feelings toward renting, and home ownership…and this is what we learned.
the rental landscape
Renters are facing a seismic shift in the housing market due to a global pandemic, extraordinary inflation rates, increased mortgage rates, and skyrocketing housing prices. Here’s what renters are currently up against:
- Mortgage rates hit over 5% for the first time since 2011
- Hyperinflation is causing the average household an additional $296 in expenses/month
- Housing prices increased 17% in 2021, and are expected to increase another 10% this year
Given the massive shifts over the last two years and decade as a whole, we wanted to know how renters feel about their finances and future. Here’s what they had to say.
let's look at
RENTER FINANCES
With 89.3% of renters saying they’ve been personally affected by inflation over the past year, renters are more financially strapped than ever before. In fact, 53.4% of respondents are very worried about inflation affecting their housing costs, and 36.7% reported they are somewhat worried. Coupling these rising concerns with the fact that less than 10% of renters are able to save over $500 a month, the next year might prove to be tougher than ever.
Most renters
can't save
THOSE WHO CAN SAVE....
RENTERS WHO CAN'T SAVE WOULD LIKE TO FOR:
Renters who can save do it for:
Only
HAVE TAKEN A BANK LOAN TO PAY FOR RENT
31% of respondents have taken out a loan to help pay rent at some point in their lives. Of these, 8.9% of renters have taken out a loan in the past year and 7.6% have taken out a loan within the last month.
According to a FICO spokesperson, less than an estimated 1% of credit files contain rental entries. Meanwhile, over a quarter of renters aren’t doing anything to improve their credit score when free rent reporting programs exist. Rent reporting can increase consumers’ credit score by an average of 60 points.
Feelings about inflation
With 89% of renters saying they’ve been personally affected by inflation over the past year, renters are more financially strapped than ever before. In fact, 53% of respondents are very worried about inflation affecting their housing costs, and 37% reported they are somewhat worried. Coupling these rising concerns with the fact that less than 10% of renters are able to save over $500 a month, the next year might prove to be tougher than ever.
Most renters
can't save
THOSE WHO CAN SAVE....
RENTERS WHO CAN'T SAVE WOULD LIKE TO FOR:
Renters who can save do it for:
only
HAVE TAKEN A BANK LOAN TO PAY FOR RENT
31% of respondents have taken out a loan to help pay rent at some point in their lives. Of these, 8.9% of renters have taken out a loan in the past year and 7.6% have taken out a loan within the last month.
According to a FICO spokesperson, less than an estimated 1% of credit files contain rental entries. Meanwhile, over a quarter of renters aren’t doing anything to improve their credit score when free rent reporting programs exist. Rent reporting can increase consumers’ credit score by an average of 60 points.
Feelings about inflation
With 89% of renters saying they’ve been personally affected by inflation over the past year, renters are more financially strapped than ever before. In fact, 53% of respondents are very worried about inflation affecting their housing costs, and 37% reported they are somewhat worried. Coupling these rising concerns with the fact that less than 10% of renters are able to save over $500 a month, the next year might prove to be tougher than ever.
let's look at
home buying
82% of respondents are interested in owning a home in the future. Most (57%) of renters plan to own a home within the next two years and that the timing has to do mostly with saving for a down payment (89%) and uncertainty about settling down in their current location (50%). 15% are unsure about owning a home in the future, while only 3.5% of respondents have no interest in owning a home in the future.
of renters definitely want a home in the future
When would renters like to be a homeowner?
What is the timing of RENTERS' home ownership plans based on?
let's look at
Renters' feelings
We also wanted to gather how people feel about being a renter. Specifically, we wanted to identify both the pain points and perks of our users’ current rentals. The takeoff of the FI/RE (Financially independent / retire early) movement, the flexibility of moving (and the opportunities that come with it), risk diversification, and the low maintenance are all factors at play in why people prefer renting.
According to our survey, the majority of renters feel neutral about renting, with 66% reporting they like that there are no maintenance costs and 50% like the flexibility of moving. Most renters (79%) dislike the lack of control over the space and that they can’t build equity (55.4%).
On being a renter:
What people like about being a renter
What people dislike about being renters
