Parking lots are not just a necessity, but an opportunity for ancillary income.
The overwhelming majority of renters, 67%, own one car, while another 21% of all renters own two, according to this year's Concept Community survey of more than 84,000 renters nationwide. Another 9% indicated they don't own a car. But one way or another, that 88% of driving renters need a place to park.
The question is: Are they willing to pay for a dedicated spot? What about a dedicated car port with a roof, how much is that worth to them?
As you can see in the graph below, the majority of renters, 60%, indicate they would indeed pay more for a dedicated spot, versus a "drive-through" community. And it's fair to suggest that at least 9% of those not willing to pay for a spot include, naturally, renters without a car.
With the help of our owner partners Waterton, we set a specific amount for each type of spot. For a garden-variety dedicated spot, we asked if renters would tack-on an additional $25 in rent. For the carport, we amped-up that figure to $75 per month, and obviously, that was a less popular option.
But how do these desires break out demographically? Surprisingly, even during a period of robust rent growth, each generation surveyed was more willing to pay for a dedicated space than a free one. And the older the driver, the more willing they are to pay that extra $25 to forego the hassle of finding a spot.
For the $75 carport, Gen X leads the pack, followed closely by baby boomers, and millennials. Maybe this shouldn't be surprising considering that Gen X-ers and boomers are more likely than other generations to own more than one car. When asked how many cars they own, 28% of Gen X-ers and 26% of boomers said they owned two, versus 17% of millennials and 15% of members of the Silent Generation.
The full results of our groundbreaking survey, The Next-Gen Apartment: What Renters Want, done in conjunction with J Turner Research, will be unveiled at the Multifamily Executive Conference in September.
In the meantime, check out our previous 2016 MFE Concept Community Stats of the Week: