The data is part of a 2023 survey for the New Home Trends Institute, part of John Burns Research & Consulting, which Redwood Living, Inc. participated in along with several others in the industry.

It includes results from more than 6,074 build-to-rent tenants nationwide and provides exceptional insight into this growing industry. This is one in a series of pieces detailing those findings.

“We find that the data revealed from this survey often mirrors our own experience at Redwood, but also reflects broader themes that exist in the build-to-rent marketplace,” said Steve Kimmelman, Founder and CEO at Redwood. “We think our stakeholders will find these insights as valuable as we do and are looking forward to sharing them in the months ahead.”

Nearly half of build-to-rent tenants report a household income of at least $100,000, and only 10 percent report a household income of less than $50,000. Nearly 20 percent report an income of $150,000 or more.

“These residents have options, and it’s gratifying that they choose to live with Redwood,” said Kimmelman. “They appreciate our neighborhood settings, quality finishes and exceptional resident services.”

Many build-to-rent tenants often bring a history of homeownership with them, the survey found. 

“When you consider that many build-to-rent tenants have previously owned a home, it’s not surprising that few build-to-rent residents require guarantors when they rent,” said Kimmelman.

“The survey found only a small percent of build-to-rent renters need one. These generally are renters with consistent income flow, a successful track record of tenancy or ownership and the means to support a lifestyle with Redwood.”

In some cases, prior homeownership encourages living in a Redwood Neighborhood, Kimmelman added.

“Many of our residents have experienced the headaches of homeownership and love the easy lifestyle a Redwood apartment home offers,” Kimmelman said. “Maintenance and DIY repairs become things of the past, leaving them more time to enjoy travel, hobbies or focus on other priorities.”

These tenants are not necessarily renting as a choice, however.

The survey found 73 percent of build-to-rent tenants would prefer to own a home.

“Life stages bring many transitions in living situations, including difficulties finding a home in some markets because of inventory challenges,” said Kimmelman. “We’re aware of that, but we also see our relationship with these residents as an opportunity to show them the benefits of build-to-rent communities.”

Saving for a down payment is a concern for only about a third of build-to-rent tenants. Market conditions—high home prices and high mortgage rates — rank higher.

“An improvement in those conditions could affect build-to-rent-demand, but long-term we know the nation is projected to have a continued housing shortage and that many in our population are expected to seek the sort of lifestyle Redwood offers,” said Kimmelman.

Other factors influencing residents’ decisions to buy a home versus rent include paying down debt, waiting to make more money or holding out until a more desirable supply of homes exists.

“Understanding our residents’ life situations and resulting rental choices is a key step in allowing us to better serve them,” said Kimmelman. “Even residents who might prefer not to rent appreciate that Redwood apartments feel like single-family homes, with attached garages, generous floor plans and outstanding amenities.”

Follow along as Redwood shares more insights and findings from the build-to-rent survey with John Burns Research & Consulting. For those looking for investment opportunities in the BTR sector, fill out the contact form to get connected with a member of Redwood’s investor relations team.