Although data shows that over 64% of tenants are looking to buy homes in 2023, there are still 36% of tenants who still prefer the ease of renting to owning their own homes. But, do you know what all these tenants look for, why they shift homes, and most importantly, how they find homes to move to? We have the answers, NoBroker created the NoBroker Real estate report in 2023. This report has insights that have been gathered from over 7 million NoBroker customers and a survey with over 12546 respondents. The report was made so that we can understand rental market trends like how renters, landlords, buyers and sellers think and what they look for in terms of Real Estate.
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Rental Property Trends: Rental Market Trends 2023
The survey on rental housing market was conducted across Delhi-NCR, Bangalore, Mumbai, Pune, Chennai, and Hyderabad. Here are some of the latest insights from our rental market trends report
Tenant Demographic
When you have a home to rent, how old do you think your average tenant will be? Well, according to our rent market analysis, a majority of tenants or renters (32%) fall into the age bracket of 25-35 years. The youth, i.e. 18-25 is the second-highest age bracket that tenants fall under.
The number of renters in the age groups of 35 to 45 years and 45+ declined. Here we slowly see a shift from renting to buying. Only 16% of renters are between the ages of 35 to 45 years and only 15% are 45+.
How Do They Rent?
People use websites and apps for almost everything, including finding homes to rent. Online portals such as NoBroker provide renters with thousands of options, and the ability to connect with landlords directly. This makes the process of finding a home much simpler and faster than having a middleman communicate on your behalf. To pay rent using a credit card click here.
We also see that experienced renters prefer to find a home through people they know like friends and family. They even take the time to go to homes that have a ‘To-Let’ board on display. We see that the need for broker services is on a sharp decline as people don’t see much merit in the high fees that brokers charge.
Read: Rent House in Delhi: Tips and Tricks for Securing Your Ideal Rental
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In Bangalore, 43% of renters don’t choose broker services, in Mumbai it’s 43% and in Chennai, it’s 40%. These numbers have grown from 33% each last year. This could be due to the large number of options that other avenues provide as well as the cost savings involved.
Why Do They Shift Homes?
There are many reasons why people move from one rental home to another, the biggest reason is, their job. It’s a known fact that if you live closer to work, you spend fewer hours on commuting and you save more money. Apart from this, you enjoy a better quality of life and will have a better work-life balance. This is precisely why over 44% of tenants shift houses to find a place closer to where they work.
The other major reason for shifting is because they need more space i.e. a bigger home. This could be because their family has grown, or because they have more disposable income and can hence afford a larger house. While house shifting it is important to choose good packers and movers.
Rent increases have also forced tenants to shift homes to keep their budgets in control. 30% of renters in Hyderabad and 26% of renters in Bangalore cite this as a reason to move homes. This could be due to the fact that these cities have experienced high rental inflation last year.
Rental Market Trends for Apartments
Here are some insights about apartment rental rate trends in 2023:
Read: 5 Easy Steps to Rent Your Home in India
Over 43% of tenants use real estate websites to find a house. It offers a more independent and unbiased experience. This is a good growth of over 35% last year. 32% of people also mentioned that they find a home through friends and relatives which is almost the same as last year. 12% of tenants mentioned that they search for a house via to-let boards (this is substantially low than last year’s 24%, but the lockdown and the restricted movement probably explain that). Only 13% of tenants use broker services.
If you too wish to move homes or find a good tenant for your home, try NoBroker by clicking below. We have thousands of options and tenants to choose from, visit us today and let us know how we can help you.
Faq’s
Q. What is the focus of the Rental Market Trends 2023 report by NoBroker?
The Rental Market Trends 2023 report by NoBroker focuses on providing insights gathered from over 7 million NoBroker customers and a survey with over 12546 respondents. It aims to understand how renters, landlords, buyers, and sellers think and what they look for in Real Estate.
Q. How was the survey on the rental housing market conducted?
The survey on the rental housing market was conducted across major cities, including Delhi-NCR, Bangalore, Mumbai, Pune, Chennai, and Hyderabad. It encompasses a diverse range of locations to provide comprehensive insights.
Read: Expert Real Estate Photography for Property Marketing
Q. What is the average age bracket of tenants according to the rent market analysis?
According to the rent market analysis, the majority of tenants or renters (32%) fall into the age bracket of 25-35 years. The second-highest age bracket is the youth, i.e., 18-25 years.
Q. How do people typically find homes to rent, according to the rental market trend report?
The report highlights that people predominantly use online portals like NoBroker (43% in Bangalore, 43% in Mumbai, and 40% in Chennai) to find homes for rent. The need for broker services is on a decline, with people preferring direct connections with landlords.
Q. What are the major reasons for tenants to shift homes, as per the rental market trends?
The primary reasons for tenants to shift homes include proximity to work (44%), the need for more space (bigger home), and rent increases, which have forced tenants to relocate to manage their budgets better.
