San Francisco, U.S.A. – ApartmentList.com , a growing apartment search engine that is reinventing the rental market on a foundation of trust and transparency, has released the results of its first “Rentonomics” Report, which uses both pricing and survey data to take the pulse of the rental economy in America. Along with the report, Apartment List has released a corresponding state-by-state snapshot to show where rents are rising and falling leading up to the presidential elections.

“Forty percent of American households rent, and we want to shed light on how this important slice of the population is faring leading up to the elections,” said John Kobs, CEO and co-founder of Apartment List. “The fact that a quarter of renters plan to never own a home indicates to us that the definition of the American Dream is changing. One third of renters have had their rent raised in a tough economic climate. While the resale market slowly recovers, it seems that more Americans are embracing renting for the long term. We will be keeping a close eye on how the next administration can improve the situation for renters around the U.S.”

• Pricing data shows average rent hikes of nearly 10%; Rents climbed in vast majority of states analyzed

An overwhelming majority of states have demonstrated an increase in asking rents since January 2011. 34 out of the 45 states the study analyzed showed rising rents. Nationally, residential rents rose 9.7% between January 2011 and June 2012. 15 red states and 19 blue states saw rents rising, while 2 red states and 9 blue states experienced falling rents. Renters in North Dakota (+32.9%), New York (+24.8%) and Massachusetts (+23.5%) suffered the highest rent hikes around the country, while residents inNevada (-8.6%), Louisiana (-7.4%) and Missouri (-4%) benefitted most from falling rents. Due to a limited sample size, pricing data was not available for MT, SD, VT, WV, and WY.

• Despite price hikes, nearly half of renters surveyed say renting is smarter than buying, and one quarter never intend to own a home:

When asked about the length of time they plan to rent, 24% of renters say they plan to rent for the rest of their lives. 47% of all people surveyed believe renting is smarter than buying a home in today’s economy. 32% of those surveyed report that their landlords have hiked their rent in the last 12 months and 44% expect their landlord to raise rent in the coming 12 months. At the same time, 57% of renters expect their income to remain flat or decline in the coming 12 months.

Also, 37% of renters say home ownership is overrated and is not an important life goal. Of the 24% who said outright they do not want to be homeowners, 39% cite the expense of homeownership as a deterrent, and 31% believe that owning is too risky financially.

• Those who do wish to own a home say the economy has delayed their ability to buy

55% of renters surveyed say they wish they were homeowners, and nearly the same amount – 59% – say the current economy has delayed their ability or decision to buy a home. Of renters who do plan to eventually buy a home, only 4% indicated an intention to buy in the next year. 41% say they plan to rent for the next one to three years. 20% plan to rent for four to five years and 7% think they will rent for six to ten years.

Image Courtesy of  rrunaway

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Melbourne, Australia - Millions of Aussies may be experiencing mortgage stress, but ‘mortgage apathy’ is the latest trend on the block, according to new research from leading national insurer AAMI.

Young renters in capital city areas are increasingly dropping out of the race to get a foot on the property ladder, with 8% fewer saying they feel the pressure to buy a house than there were in 2010. Over one third of young city renters that say they’re happy renting with no plans to buy a property. A double‐whammy of high housing prices and global uncertainty around property prices could be to blame for the rise of ‘mortgage apathy’, with younger city renters preferring to hold tight, rather than make what is likely to be the biggest financial decision of their life.

Newspoll Market & Social Research conducted an independent internet survey of 3,121 Australians, 18 years of age and older, across all states and territories in 2012 including 184 renters aged 18‐24 years in ACT, Sydney, Melbourne, Brisbane, Perth and Adelaide. Collected data has been weighted in line with current Australian Bureau of Statistics or ABS population demographics to ensure any extrapolation of results is representative of age sex and area.

Newspoll Market & Social Research also conducted an independent internet survey of 2,812 Australians, 18 years of age and older, across all states and territories in 2010 including 284 renters aged 18‐24 years in ACT, Sydney, Melbourne, Brisbane, Perth and Adelaide. Collected data has been weighted in line with current ABS population demographics to ensure any extrapolation of results is representative of age sex and area.

The key findings

31% of city renters aged 18 to 24 report feeling pressure to get a mortgage, compared to 39% in 2010.

35% of city renters aged 18 to 24 say they are happy renting with no plans to get a mortgage, compared to 29% in 2010.

While Australians are typically achieving life’s milestones like getting married, having children and buying a house later in life, this is not enough to account for such a dramatic rise in “Mortgage Apathy”, according to Reuben Aitchison, Corporate Affairs Manager for AAMI.

“Twenty or thirty years ago average house prices in Australia were three to four times the average salary, whereas today we are looking at a multiple of seven times. Saving for a deposit is increasingly out of reach for young people today, and if they are going to get a foot on the property ladder they want to wait till they know they are investing at just the right time.

“We know that people who own their own home tend to take a greater sense of responsibility for their dwelling. But this is a new trend and we will watch with interest to see how longer‐term renting affects the way tenants treat their dwellings and therefore the effect on risks faced in and around the home.”

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