Key regions: Japan, China, Australia, Germany, United States
The Residential Real Estate Leases market in North America is experiencing significant growth and development.
Customer preferences: Customers in North America are increasingly opting for residential real estate leases instead of purchasing properties. This trend is driven by several factors, including the desire for flexibility and the rising costs of homeownership. Leasing a property allows individuals to have a place to live without the long-term commitment and financial burden of buying a home. Additionally, leasing provides the opportunity to live in desirable neighborhoods or cities that may be financially out of reach for homebuyers.
Trends in the market: One of the key trends in the residential real estate leases market in North America is the rise of co-living spaces. These spaces, which typically consist of fully furnished apartments or houses with shared common areas, cater to young professionals and students who are seeking affordable and communal living arrangements. Co-living spaces offer a sense of community and convenience, with amenities such as cleaning services and social events. This trend is particularly popular in urban areas where housing costs are high and living spaces are limited. Another trend in the market is the increasing demand for short-term leases, driven by the rise of the gig economy and the popularity of platforms such as Airbnb. Many individuals are now opting to lease their properties on a short-term basis to capitalize on the growing demand for temporary accommodation. This trend has also led to the emergence of property management companies that specialize in managing and leasing properties for short-term rentals.
Local special circumstances: North America is a diverse region, with varying local circumstances that impact the residential real estate leases market. In major cities such as New York and San Francisco, high housing costs and limited availability of housing have contributed to the popularity of leasing. In contrast, in suburban areas and smaller cities, homeownership remains the more common choice due to lower housing costs and a greater availability of properties.
Underlying macroeconomic factors: Several macroeconomic factors are contributing to the growth of the residential real estate leases market in North America. Low interest rates make it more affordable for individuals to lease properties instead of buying, as the cost of financing a mortgage is relatively high. Additionally, changing demographics, such as the increase in single-person households and the aging population, are driving the demand for rental properties. These factors, combined with the desire for flexibility and the rising costs of homeownership, are fueling the growth of the residential real estate leases market in North America.
Data coverage:
Figures are based on total and average revenue of residential apartment leases.Modeling approach:
Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.
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