Location is the biggest factor influencing their home selection, followed by home size.

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

It includes results from more than 6,000 build-to-rent tenants nationwide and provides exceptional insight into this changing industry. This is the fourth in a series of pieces detailing those findings.

“It seems simple, but it’s quite powerful: Where we live matters more than anything else about our living situation,” said Steve Kimmelman, CEO and Founder at Redwood. “That’s why Redwood puts such thorough analysis into our neighborhood development. Sometimes there’s only one opportunity to choose the locale that’s best for your future residents, and that decision can affect the property for decades.”

Proximity to work, family and friends are the specific influences in a tenant’s location decision, the survey found.

Depending on life stages, respondents weighed either how close they were to work or to their personal circle more heavily.

Overall, proximity to work was the main driver for 44 percent of respondents, followed by family and friends at 34 percent and grocery shopping at 30 percent.

Other location-specific factors included nearby restaurants, a desired school district, healthcare services and entertainment.

“These are all components of a vibrant, supportive community, and we consider all of this when choosing the location of our properties,” Kimmelman said. “Redwood’s neighborhoods generally enjoy easy access to all of the above.”

Many survey respondents echoed those priorities in their comments.

“I own a lake home in Wisconsin but would rather be near my kids and grandkids when I’m not at the lake,” one respondent said.

Location was the top factor in decision-making whether an individual preferred to rent or own.

In both cases, home size ranked second.

“These are universal priorities,” Kimmelman said. “People care about living in specific areas and then they are not willing to compromise on the size of the home, which often includes the number of bedrooms.”

All Redwood apartment homes are two-bedroom floor plans, which meet a range of households’ needs.

“The difference that we see in home selection priorities is from those who prefer to rent versus those who would prefer to own a home,” said Kimmelman. “Among those who prefer to rent, lifestyle ranks third and cost ranks fourth. For owners, it’s reversed. So that shows us dedicated renters appreciate the ambiance and amenities a build-to-rent community offers.”

In a previous piece exploring the New Home Trends Institute Survey, data indicates that build-to-rent tenants often place heavy emphasis on the quality of their professional property maintenance. Redwood dives deeper into those findings here.

Additionally, the survey revealed that build-to-rent tenants often have higher incomes and have previously owned a home. Redwood details that data here.

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.