1 Fannie Mae Confidential and Proprietary

Of the respondents polled, approximately 59 percent were multifamily renters aged 18-34. That percentage is the 

highest among all multifamily renters polled to date. Furthermore, nearly one-third of those multifamily renters 

earn less than $25,000 per year, or about 28 percent. The next highest income bracket for multifamily renters was 

$50,000 to $100,000 per year; approximately 28 percent of respondents fell within this income range. 

Regarding educational attainment, approximately 29 percent of multifamily renters had some college 

experience, while 27 percent of multifamily renters graduated from high school. One of the most telling 

demographic characteristics of the multifamily survey respondents was that approximately 61 percent were 

single. Having a high concentration of single multifamily renters corroborates our belief that most multifamily 

renters, especially those in the prime renting cohort, are multifamily renters for both financial and lifestyle 

purposes. 

Multifamily Economic and Market Commentary

April 2020

Fannie Mae NHS Rental Survey Results

Source: NHS Key Renter Insights

Demographics of Survey Participants

Single Family Renters Multifamily Renters

Age of Renters in the National Housing Survey as of Q1 2020

Fannie Mae’s National Housing Survey® asks respondents a series of questions intended to better understand 

housing sentiment, including questions regarding renting, homeownership, and both current and future 

expectations of the housing sector. The survey focuses on six groups of respondents: homeowners, single-family 

renters, multifamily renters, renters aged 18-34, and renters aged 35 and older. The most recent renter survey, 

conducted during the first quarter of 2020, yielded some interesting findings, including from renters aged 18-34, 

the prime renting cohort for the multifamily sector comprised of both Millennials and Generation-Z (Gen-Z). 

Some of the trends identified in the survey differed from just a few years ago. One of the most interesting is that the 

prime renting cohort’s desire for eventual homeownership appears to be softening. Even though this group still 

believes that owning makes the most financial sense, there are several key reasons why their stance on 

homeownership appears to be waning: it is often cheaper to rent than to own a home; renting offers more flexibility 

in housing choices; and renting is less of a “hassle” than owning. Still, the majority of the prime renter cohort 

aspire to achieve homeownership at some point during their lifetime. Within the last few weeks a major economic 

shock occurred within the United States related to COVID-19, and the survey data referenced throughout this 

commentary was gathered prior to that shock.

47%

18% 25%

10%

59%

13% 17% 10%

18-34 35-44 45-64 65+
2 Fannie Mae Confidential and Proprietary

Multifamily Economic and Market Commentary

Source: NHS Renter Key Insights

They survey also asked about renters’ impressions of homeownership. The questions were framed from both a 

lifestyle and a financial perspective, and the answers for each were slightly different. 

From a financial perspective, approximately 73 percent of the prime renter cohort believe homeownership is more 

sensible than renting. However, from a lifestyle perspective, only 56 percent of the prime renter cohort believed 

homeownership is more sensible. The underlying data from the survey responses shows that the prime renter 

cohort appears to favor flexibility and location. 

Renters’ Views on Owning vs. Renting (Financial Perspective) as of 2019

Renters Single Family 

Renters

Owners Multifamily Renters Renters 18-34 Renters 35+

Homeownership Still Valued as a Financial Investment

90%

94%

89% 88%

92%

67%

73% 61%

65%

70% 72%

76% 68% 68% 73%

64% 69%

55%

62%

72%

72% 75%

64% 66%

74%

60%

71%

58% 61%

67%

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

Legend
3 Fannie Mae Confidential and Proprietary

Multifamily Economic and Market Commentary

Source: NHS Renter Key Insights

They survey also asked about rent levels over the past year. Of the prime renter cohort, 61 percent stated that their 

rent levels had mostly stayed the same. However, nearly 32 percent said their rent had increased. There are a myriad 

of reasons why rents can change over a given year, including local supply and demand drivers. 

However, for those respondents whose rent level stayed the same, the result might be attributable to lease renewal 

timing. Historically, renters prefer not to move during the colder months of the year (Q4 and Q1) and, as a result, they 

could be reporting similar rents over a 12-month timespan. In other words, their rent remained unchanged since it was 

not time to renew their lease.

Renters Single Family Renters Multifamily Renters Renters 18-34 Renters 35+

How Rents Have Been Impacted Over the Last 12 Months, as of Q1 2020

Gone up Gone Down Stayed the Same

Not All Renters Experienced Rent Increases

Unsurprisingly, another key finding is that there are a number of reasons why people rent, and they are not all due to 

financial constraints. For example, the primary reason among the prime renting cohort is that they’re preparing their 

finances to one day own the home they desire (and not necessarily that they can’t afford any home) – and renting 

allows them greater flexibility to do so. 

Renting as a Path to Homeownership

33%

40% 43% 39% 35%

24%

31%

38% 34% 29%

48% 49% 53% 49%

43%

31% 36%

43% 39%

32% 34%

43% 44% 40% 38%

4%

3%

3% 4%

5%

2%

3%

3% 4%

8%

7% 4%

3% 4%

1%

5%

3%

3% 5%

7% 3%

3% 3% 3% 3%

62% 57% 53% 54% 59%

72%

66%

59% 61% 63%

43% 46% 43% 45%

55%

62% 60%

54% 55% 61% 62%

53% 53% 54% 58%

Q1

2019

Q2

2019

Q3

2019

Q4

2019

Q1

2020

Q1

2019

Q2

2019

Q3

2019

Q4

2019

Q1

2020

Q1

2019

Q2

2019

Q3

2019

Q4

2019

Q4

2019

Q1

2019

Q2

2019

Q3

2019

Q4

2019

Q1

2020

Q1

2019

Q2

2019

Q3

2019

Q4

2019

Q1

2020
4 Fannie Mae Confidential and Proprietary

Multifamily Economic and Market Commentary

According to the survey, approximately 29 percent of prime renter cohort respondents said that they were 

preparing for eventual homeownership but had no definitive timeline in mind. Furthermore, approximately 23 

percent of the same respondents indicated that renting is simply the more affordable option at this point in 

their lives. This response makes sense, since there are a number of metro areas across the country that have 

attracted new prime renter cohort-aged residents over the past decade, but local housing prices remain out of 

reach for many of them. These metros include some of the nation’s most expensive locations, including New 

York City, San Francisco, San Jose, and Seattle. And it is not just in these expensive, more coastal metros. 

According to the National Association of Realtors, since 2017 single-family home prices have increased by 

approximately 10.4 percent ($248,800 in 2017 compared to $274,600 in 2019). It’s unsurprising that rising home 

prices would make renting far more attractive for those who aspire to own someday as they continue to save to 

buy a home. 

Furthermore, the prime renter cohort respondents stated that they found it was difficult to save the money 

necessary for a down payment on a home. One of the more interesting findings was that 23 percent of the 

prime renter cohort respondents believed that renting provides more flexibility for future housing choices. 

Even though the prime renter cohort clearly aspires to own a home at some point in their lives, they also 

prioritize and desire the flexibility that renting offers them now and in the near future. 

The survey also found that renter respondents had some obstacles that explained why some of them may be 

renting indefinitely, even though they aspire to own a home. Forty-four percent of the prime renter cohort 

respondents felt that the biggest obstacle to homeownership was having enough money available for either a 

downpayment or closing costs. Furthermore, approximately 50 percent of the prime renter cohort respondents 

feel as if they do not have the necessary credit score or credit history to obtain a mortgage.

Source: NHS Renter Key Insights

27%

22%

19%

10%

8%

5%

2%

32%

20% 19%

9% 9%

3% 3%

19%

24%

21%

12%

8% 7%

2%

29%

23% 23%

9%

6% 6%

2%

25%

21%

13% 12% 11%

4% 3%

You are making

yourself

financially ready

to own

Renting is a

more affordable

option

Renting gives

you more

flexibility in your

future choices

Living in a

rented home is

less hassle and

stress

You cannot

obtain a

mortgage

Renting allows

you to live in a

better

neighborhood

Renting protects

against declines

in housing prices

Renters Single Family Renters Multifamily Renters Renters 18-34 Renters 35+

Other Reasons for Renting 

Primary Reasons for Renting Amongst Renter Groups as of 2019
5 Fannie Mae Confidential and Proprietary

Multifamily Economic and Market Commentary

Even though some of the results in the survey indicate that the prime renter cohort’s stance on eventual 

homeownership is softening, the dream of owning a home is still alive and well. The main trend that has 

changed recently is that the prime renter cohort seem to aspire to own a home at a later time in their lives 

than previous generations. One of the questions that was asked regarded lifetime homeownership 

aspirations. For the prime renter cohort, approximately 89 percent of the survey respondents stated that they 

intend to purchase a home in their lifetime, the highest of all the renter age groups surveyed. 

Even though the softening of homeownership aspirations from the prime renter cohort may not be ideal for 

the single-family sector, it is likely good news for the multifamily sector. Rising single-family home prices 

nationwide is also a contributing factor to many renters putting off homeownership for a longer period. 

The Millennial generation is currently the most populous age cohort; however, as Millennials age, their 

housing desires are expected to change. The new emerging adult-age cohort, Gen-Z, may have different 

housing needs and desires from Millennials. It will be interesting to see how Gen-Z shapes the future of 

housing – both rental and owned – as they compete with Millennials for housing over the coming decades. 

Source: NHS Renter Key Insights

Renters Single Family Renters Multifamily Renters Renters 18-34 Renters 35+

Homeownership is Still the Dream

Lifetime Intentions Regarding Home Ownership as of Q1 2020

94%

94% 94%

92%

95% 93%

81%

83%

79%

81%

81%

79%

94% 92% 90% 94%

90% 89%

65%

71% 65% 68%

69%

68%

87% 83%

83% 83%

84%

75%

73% 78%

76%

73%

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

Legend
Multifamily Economic and Market Commentary

Francisco Nicco-Annan

Economist

Steven Deggendorf

Director Market Research Insights

Sarah Shadad

Market Insights Researcher

Multifamily Economics and Research

April 14, 2020

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae’s Multifamily Economics and Research Group (MRG) 

included in these materials should not be construed as indicating Fannie Mae’s business prospects or expected results, are based

on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on 

many factors. Although the MRG bases its opinions, analyses, estimates, forecasts, and other views on information it considers 

reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular 

purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The

analyses, opinions, estimates, forecasts, and other views published by the MRG represent the views of that group as of the date 

indicated and do not necessarily represent the views of Fannie Mae or its management.

6