Approximately 3 out of 4 renters are blaming mortgage rates for low housing accessibility.

According to a new report by Knightvest Capital, a real estate investment and management company based in Dallas, 74% of renters report that their home purchase timeline has “lengthened meaningfully” due to increasing mortgage rates. Additionally, 31% say they feel either “ambivalent or uninterested” in home ownership altogether.

“The rent-versus-buy decision is increasingly nuanced given this dynamic macroeconomic environment, and it’s interesting to see the data support what we’re hearing anecdotally from residents,” said Knightvest Capital founder and CEO David Moore.

“If you create communities built on quality, service, and care, then apartments can become sought-after destinations where residents thrive through multiple seasons of their lives,” Moore explained.

To understand the sentiment among renters, Knightvest surveyed more than 4,100 U.S. apartment renters between November 20 and November 30, 2023. Data suggests that over half of respondents choose to rent out of their own free will and not out of necessity due to the high cost of home ownership.

According to the report, the top three reasons people rent include the high cost of home ownership (62%), lower maintenance and repair responsibilities (51%), and enhanced flexibility to relocate (35%).

Of the survey respondents, 51% of Millennials and 54% of Gen Z respondents said they choose to rent. While homeownership has its perks, many adults and some former homeowners say they prefer to live in apartment communities over single-family neighborhoods for social interactions and ease of living.

The report notes that Baby Boomers (78%) value social interaction more than Millennials (71%).

“As we head into 2024, this data underscores the enduring demand for apartments and reveals insights that will continue to shape the real estate landscape for years to come,” Moore said.

“At Knightvest, we remain focused on executing our strategy to renovate and reposition apartment communities to create compelling, modern living environments at an extraordinary value. With people staying in apartments longer, this work has never been more important than it is today.”