Sunnier Locations

Out-of-state applicants for rental properties increased 42% from 2020 to 2021, according to a new data analysis from TransUnion. In that same period, rental applications in rural areas increased 28%, while urban rental application volume rose just 10%. The primary driver of these trends appears to be rising housing costs and the widespread availability of remote work, which began during the COVID-19 pandemic. “With remote work firmly in the norm, we’ve seen renters actively seeking new locations that better suit their budgets and lifestyles,” said Maitri Johnson, VP of Tenant and Employment Screening at TransUnion. “While many are going out-of-state to sunnier environments, we’re also seeing a preference for rural areas and exurbs that have more space and a lower cost of living, but also a relative proximity to cities and airports.”

Generally, the cross-state migration patterns show more people leaving the Rust Belt and Northeast in favor of the Southern Atlantic and Mountain states, as well as Arizona and Texas. Overall occupancy of U.S. rentals reached a record 98% in January 2022. This may have been driven in part by an influx of homeowners who capitalized on their home equity by selling while housing prices were at an all-time high, and renting until valuations come back down. When looking at rental applications from 2020-2021, there was a 37% increase in applicants who had sold their home within the past year, and a 16% increase among applicants with an outstanding mortgage.

Source: DSNews