Zillow’s Secrets to Understanding Renters
Articles,  Blog

Zillow’s Secrets to Understanding Renters

Stephanie: Welcome everyone. My name is Stephanie Vernon and I’m on the
marketing team here at AppFolio. We are providers of web-based property management
software. We also regularly host these free, educational
events designed for property management professionals. Today, we have a great presentation from Senior
Economist at Zillow, Skylar Olsen, on the topic of Zillow’s Secrets to Understanding
Renters. First off I’d like to start with
a few logistics. One of the most common questions we get is
if we’re recording this session and the good news is that we are. We will post the recording and the slides
on our blog and also post it to our Facebook pages as well. I’d like to take a quick moment just to tell
you a bit about us. At AppFolio, we offer a complete web-based
solution, and one of the reasons why we love presenting this kind of educational content
is because our software really touches all parts of property management. Our solution includes property management
and accounting, online rent collection, prospects and guest card tracking, marketing tools to
post your vacancies and we also offer beautiful websites that are fully integrated with AppFolio
software. We offer resident screening, the ability to
accept online applications and online leases and we just recently released a mobile inspections
feature. Most all of these features are included with
your monthly service to help you run a more successful business. At the end of today’s session, we’ll ask you
about your interest in learning more about AppFolio software. If you don’t already love your property management
software, let us know and we’ll be in touch. Now I’m going to pass it over to Krista at
Zillow. Take it away, Krista. Krista: Stephanie just went over AppFolio,
so I just wanted to take a minute to talk about Zillow Rental Network. When you participate in the Zillow Rental
Network as a landlord or property manager, you can send us your rental listings which
means you’ll have access to your rental listings being seen all across all of our consumer
brands, which are Zillow, Trulia, HotPad and in addition our partner sites such as MyNewPlace,
Yahoo, MSN and AOL. By accessing that, it means you have the broadest
reach to all of the nearly 18 million rental shoppers a month that are coming to our site,
and to be honest that doesn’t even include the rental shoppers coming from Trulia. You also have your listings being seen on
the sites with the highest brand awareness among rental shoppers of the rental websites. We also have the top mobile apps. Rental shoppers we know are searching on mobile,
so we’ve made it a priority here at Zillow to have the best and most popular apps available. For you to take advantage of this, we have
marketing solutions for all of our rental professionals. We have Postlets, which is our free rental
listing tool, to post your listing on Zillow and all of the brands we showed you. It’s for landlords and property managers of
single-family homes and buildings with fewer than 50 units. It’s a manual listing tool. We also have a rental listing feed program,
so if you use property management software like AppFolio it makes it really easy to send
your listings directly to Zillow, and that is also free. You just simply click “post to internet” on
your vacancies. Finally, we have Zillow Rent Connect, which
is our performance-based solution for property managers with buildings with 50-plus units. Now I’d like to introduce Skylar and figure
out our technical difficulties. Skylar Olsen is our Senior Economist. She joined Zillow in the summer of 2012 and
she creates many of Zillow’s indices and metrics, including the buyer-seller index and the buy-rent
breakeven horizon. In addition to authoring many of Zillow’s
research projects, she also heads the economic research satellite team at Zillow New York
City. She currently holds a PhD in Economics from
the University of Washington specializing in econometrics and environmental economics. Take it away, Skylar. Skylar: Thank you for having me. This is a real treat in terms of what I do
in a given day to be able to talk to people and share insight about markets. It certainly takes me away from the computer
and away from crunching some numbers. It’s a lovely change. What I’d like to do is really first start
with kind of an overall rental market overview for the nation, then we’ll dive into characterizing
the renters that are renting single-family units and then we’ll open it up to questions
and have a bit of a conversation. Rental markets across the country are really
seeing increased pressure. What you see in front of you on the slide
here is we have a rental index that goes back to 2012, which is when we started collecting
data and really trying to capture rental markets across the country, but we can talk about
rental increases over more than a decade. They didn’t have the same kind of reset that
home values did. In many ways, rents have just continued to
pace and continued increasing and they’ve outpaced income. What that’s done is put a lot of pressure
on renters, but it certainly made the rental market fairly lucrative because there’s a
lot of competition for certain kinds of units. What you’re seeing with this blue line, that
tracks the median rent of all properties across the country. We focus on not just apartments. We’re looking at single-family, condos and
co-ops. We’re seeing that the median rent has increased
to just under $1,400 nationally, and that increase over the past year we saw was 3.7%
higher than last year. Really, there are some sensational examples
out there about the growth in rental markets just illustrating the kind of pressure that’s
being put on these rental prices mainly because it’s really hard for supply to respond to
increases in demand. We’re talking about the burgeoning and growing
tech markets of the nation, so think San Francisco and San Jose. Seattle actually is a growing tech market
as is Denver. These are places that rents have increased
very strongly over the past year. San Francisco is probably your biggest and
best most sensational example. Over the past year, rents in San Francisco
are up 15% and a lot of that has to do with population growth, people coming in for jobs
and also supply constraint. Let’s talk a little bit about the whys, and
of course you’re talking to an economist so economists can’t really go too far without
saying supply and demand. It’s natural that we say that because that’s
what it almost always comes down to. Let’s talk a little bit about that demand
side. The home ownership rate has returned to the
level that we saw in the 1990s. A lot of home ownership got gains through
the bubble. That’s what drove the bubble. A lot more people were buying homes than they
did before, but then we had this crash and you’ve got a lot of foreclosed homeowners
that are turning from where they once bought and now they’re renting. A lot of those foreclosed homeowners are renting
single-family units. You might have heard in the news that household
formation has been fairly low. You can form a new household by moving out
of your parents’ house or by migrating to the U.S. There are a lot of different patterns here,
but a lot of that household formation has been in rentals since 2005. Almost all of it. New households that are coming out, whether
you’re a millennial moving out from your parents’ basements or you were once living with roommates
and now because you got a new job you’re able to move out on your own, are funneling toward
the rental market, which is really great for your business if we’re talking about profits,
nuts and bolts here. Over the course of the recovery, let’s talk
a little bit about what happened. A lot of people lost their homes. They lost jobs and they lost their homes not
able to keep up with those mortgage payments. Foreclosed homeowners are people that might
have been used to more space. When you have this foreclosure crisis happening,
you have people who have to vacate their home and they have to go live somewhere. That coincided with the fact that there are
a lot of homes that are kind of in that entry level that were foreclosed on that are an
opportunity for investors. I’m sure in your business you can very much
still imagine this, where you can buy a single-family property, convert it to a rental and then
supply that property as a rental to these new households that need somewhere to live
with more space than, say, moving to an apartment. What you’re seeing in front of you here is
each bar represents a different year that we pulled out of the census. What we’re doing is saying, “What share of
the renters are renting single-family properties?” What you should notice here about this is
those blue bars getting bigger over time, so now 42% of renters are renting SFRs. It’s a larger share of the rental market than
it was before. Notice the smaller shares in these small multi-family
units. What’s really been maintaining are these large
apartment complexes because that still takes up another large share of the rental property. When we talk about the changing landscape
of property management or the changing landscape of what kinds of properties are rented, the
biggest change has been in the greater share of SFRs. Again, it’s important to remember where a
lot of these new renters and new households are coming from. You’re either looking at small families making
it out on their own and trying to form their own households or you’re looking at households
that were unlucky during the foreclosure crisis. What you’re seeing in front of you are the
unemployment rates over the past couple of decades here, and what you should notice is
that green line is the SFR rentals. The foreclosure crisis and this unemployment
rate go hand in hand. Renting an SFR is an opportunity to someone
who might have lost their job and lost their home. You should also notice that this graph is
good news for both the green one which is the SFR rentals, orange, apartment rentals,
and blue is if they’re SFR owners. In almost all cases, this unemployment rate
is coming down. This is the economic recovery that we’re seeing
in action here. Job growth is doing well across the country. It’s another thing that is putting pressure
on the rental prices, but this is good news. Is it still the case that those that are renting
SFRs do have higher unemployment rates? We’ll talk a little bit more about other differences
between these groups. Let’s talk a little bit about the supply side. We talked about some reasons why there’s a
lot more rental demand. We’re going to focus on what’s constraining
the supply. There was a lot of negative equity. In other words, a lot of mortgaged homeowners
owe more on their home than their home is worth, and that’s concentrated in the bottom
tier, in other words, entry-level homes. That’s the red bar you see on the far left. All across the country, supply is constrained
because we’ve got a lot of homeowners that can’t move. They have to wait for their home value to
come back up so those that are moving into an area and can’t find that inventory for
sale, you turn to renting. You could get out of that kind of scenario
if we had more construction, but if you look at that green line here, look at where it
begins. It’s up around 4.5 million existing home sales. In pre-bubble years we used to have 800,000
new home sales in a given year. Now we’re down still way below those pre-bubble
periods at only 540,000 new home sales. That’s not supplying a lot of extra supply. The existing housing stock and your rentals
are an important part of what’s available for someone to live. We’re not seeing a lot of increase in supply
so that’s again putting a lot of pressure on the rental market and that can be good
for your business. Who is the SFR renter? When we characterize someone, look at demographics
and different kinds of patterns relative to SFR owners, they tend to be younger. They tend to be less affluent. They tend to be more likely to have experienced
a major demographic event, and by that I mean they’re more likely to have recently been
married or had children. They’re moving into the SFR in order to have
more space to start a new life. They’re more likely to be transitionary. We’ll go through some visuals to talk about
that. They also tend to live in denser communities. SFR renters are more likely to be . One of the points that was at the top of that
list was that they tend to be less affluent. What you see in front of you here is income
over time for full-time employed adults. What you can notice is relative to SFR owners,
renters in general tend to be much lower income and the SFR renter is lower than generally
your apartment renter even as far as what means they have in order to put towards housing. They’re likely to be lower income and they’re
also to be more likely to have experienced a major life event. They’re more likely to be in a transitionary
period. They move more often. Renters do. That’s one of the reasons why you rent. It’s because you can’t guarantee that you’ll
be in this home for long periods of time to recover those large start-up costs. Renters, SFR renters, apartment renters are
more likely to have experienced major life events, particularly for SFR renters. They tend to be young families so you need
more space to support the family to start your life. You can’t fit them into an apartment, but
you can turn to the SFR rental market. Also, they’re more likely to have recently
divorced. You’ve got to move out of the house that you
owned with your previous partner and now you’re renting, but let’s focus on the positives
of the birth or marriage. SFR renters relative to apartment renters
are more likely to have children. In your business, what you can kind of build
up are nearby parks or more space for children to play or children in the area. Good schools are an important element that
can drive people to your area. Here we see that 52% of SFR renters, over
half, have children, as opposed to SFR owners where it’s only 42% and of course apartment
renters only 27%. Now as far as how many children you have,
SFR renters are likely to have three or more children, so 28% of SFR renters in the US
have three or more children. Again, this points to the need to have more
space. You can emphasize low-cost daycare solutions
nearby. These are other ways that you can really serve
this population and attract people. You’re more likely to have children and you’re
also more likely to be a single parent, so 25% of SFR rentals are single-parent households. Among households with children, the share
that is single parents is much higher among renters. For single parents it’s very hard to save
for that down payment to become an owner. You’re at an earlier stage in your life. Forty-seven percent of SFR renters that have
children are single parents. Apartment renters, in an even smaller space,
if you have a child in that kind of unit are even more likely to be a single parent. Again, low-cost daycare available nearby is
really a key element that you can use to drive business. You can imagine if you have a lower income
you’re more likely to have kids, this has implications for the way we live. It always does. A lot of our decisions can be driven by preferences,
but they’re certainly also driven by constraints. If we look at the graph in front of us we
can see, and I’m sure some us might have been able to guess, that single-family owned homes
do tend to be larger than those that are rented. The rental units that are in the SFR space
tend to be smaller homes. They tend to have fewer bedrooms, 2.8 bedrooms
relative to 3.3. It’s also no surprise that they tend to be
larger spaces or have more bedrooms than apartments. The interesting part is when we look at the
green bars. You’ll see that SFR owners have more bedrooms
per person. You’re generally more affluent if you’re an
SFR owner and you’re less crowded in your home. SFR renters, remember, are more likely to
have three or more children, so you’re a little more crowded. You only have 1.3 bedrooms per person. Apartment renters, of course, are even more
crowded still at less than a bedroom per person in these kinds of units. I often think to myself, “What is the next
kind of way that we live? What is the next new kind of unit?” I would imagine with the affordability being
a rising problem, specifically around that shared space or shared backyards, the ability
to give space and be less crowded is going to be at more and more of a premium. Maybe you can’t afford to live in a larger
space, but maybe there’s that shared element in the new sharing economy that will rise
up, but that’s just me speculating based off of just an economist’s fancy I guess. Again, I know I keep going back to the daycare. I have been thinking a lot about affordability
and the major costs that face Americans today, and it ends up being housing is the biggest. It ends up being transportation, and we’ll
cover that a little bit at the very end. The other part, if you’re a parent, a huge
cost of your life is daycare. If we look at this graph, what I’m highlighting
here is the labor force participation rate. I have a stay-at-home houseman. That’s what I call him because here I am being
a powerful woman, so it’s not always the woman that has to stay home to take care of the
kids of course, but that is the standard. If you look at that orange bar, that’s the
labor force participation rate of women. It’s generally lower than men, the green bar,
because they tend to be the stay-at-home parent. If you look at SFR renters, due to lower incomes,
due to constraint and affordability often experienced by these kinds of households,
the labor force participation of women is even lower because you often can’t afford
to send your child to daycare, which comes with a double-edged sword because then it
means you can’t afford to add another income to your household. It’s a rough spot to be in. This just kind of highlights the major crunch
that happens on households when they have to try to make these decisions between adding
an extra income with both parents working versus being able to afford daycare. I know I keep harping on it and I’ve been
thinking about it lately, but it is an important part and an important part of a lot of the
decisions that people have to make when they choose where they’re going to live. Do I sacrifice and live in a place that’s
a little more affordable so that I can send my kid to daycare so that I can continue working
or not? I want to jump again into a little different
vein here and talk about transportation choice. Again, it’s just like the choice of where
we live. It’s partially a function of where we want,
preferences. Sometimes it’s a function of where we can
afford to live. You may have a preference to be in an incredibly
walkable area. Now you might be able to imagine that walkable
areas also come at a premium. You’re generally near restaurants and other
amenities. These are places that people value. We did a study that looked at what the effect
was of a Starbucks coming and moving in your neighborhood. What would happen to your home value? We saw a significant jump up. People like to be around amenities like coffee
shops and cool restaurants and all these other things that make our lives vibrant. That could be expensive. It can be expensive to live by all those vibrant
places, so maybe you have to move farther away and be farther away from the hubs. How do you travel around? How you actually make it work also depends
on your means and to the extent that these different groups have different income levels
they tend to employ different strategies. People who rent SFRs, rent the single-family
homes, tend to be more similar to people who own SFRs in the sense that there’s a much
smaller share that tend to be carless. When I see this number, and I’m talking about
the green bars over to your right, I almost think that it is more a function of your location
when you’re in these kinds of units. Apartments tend to be in the urban hubs or
near transportation centers where amenities build out around them, and they do have an
experience where it is more feasible to walk. The next slide will illustrate that. Apartment renters, almost a third of them,
are carless. SFR renters, since SFR rentals are sprinkled
among SFR owners, they’re the renter next door and they have proven to be much less
likely that they’re carless. That’s also of course illustrated in your
commute type. SFR renters are more like SFR owners in this
respect. A smaller share of them bike and smaller share
of them use public transit. I think it’s also important to recognize that
those that end up renting often aren’t the set of the population that have large assets
that enable someone to buy a home or the consistent employment that you have to document that
lets you get even a smaller size down payment in order to buy a home. Again, I want to emphasize that two of the
major expenses that people have are housing and transportation or commute costs, both
in terms of time and in terms of money. More and more, you see people talking about
transit-oriented development and really emphasizing it. Relative to owners, SFR renters still do use
these modes of transportation more often. Not as much as the apartment renters that
are living downtown, but certainly more than the SFR owners. It may be more crucial. It may be the strategy that this household
needs in order to afford their lifestyle when they make the tradeoffs that they do. Let’s look at the share among those who commute
by car. Sure, you can commute by bike or public transit,
but we’re a motorphilic society in many ways, in more places than others. Let’s say you commute by car. Again, illustrating a bit of the resources
that are available to these different kinds of households and how they funnel out, the
share who carpool is higher among SFR renters than among SFR owners. It’s much higher among apartment renters,
but still there is that difference between the two SFR groups. They’re more likely to carpool. It may be a product of income, disparity in
incomes, or strategies that someone uses to afford an area, or in my view stay sane, but
it is something there to consider. Krista and I are in the business of making
apps and tools to help people connect together. We connect people to professionals in a space
or build a marketplace. It’s just me waxing on different ideas, but
any way that you can kind of facilitate connecting commuters together. We live in a time when more and more people
say that the reason they’re moving is because they need an easier commute, and I’ll illustrate
that at the very end, but to the extent that you can help that connection might be a valuable
service. These differences in SFR owners, SFR renters
and apartment renters are important, and the reason I think they’re important is because
they underlie the major motivations that people have for moving. We said at the very beginning of this that
SFR renters or renters in general were more likely to be in transition periods of their
lives. They’re more likely to have moved in the last
12 months. They’re more likely to be unemployed, which
means maybe you’re searching for a job so you can move from another metro to really
seek out bright lights in big cities to make it work. I just want to walk through this a little
bit. The graph that you see in front of me is one
of my favorite graphs that I’ve made recently. It illustrates me as a data nerd and should
motivate you that it is interesting. Let’s talk a little bit about it. The census asks people, “Why do you move?” You look at the people who moved in the last
year and you say, “Why did you do it?” Here, we’ve broken out the share of people
who have provided different reasons. Notice I go back to 2000 and we train it forward
to the most recent census in 2014. Notice that first blue line in the decreasing
motivation segment. It says, “I moved because I wanted new or
better housing.” It’s been fluctuating quite a bit through
the housing bubble and bust. As far as a lot of people during the ramp
up of the bubble, they’re going out and buying homes. They want new or better housing. Then through the crash that number came far
back down. That’s a less prevalent motivation than before,
again emphasizing the importance of your business. A significantly smaller share of people says
that they moved because they wanted to own a home and not rent it. That’s an affordability problem too. It’s not having the down payment and not having
the documented income in order to purchase that home, but it also means that renting
is a bigger share of people’s housing life cycle. The other two are relatively flat in that
segment. It’s the same thing with the middle box. These are things that are just constantly
going to be reasons and forever will be reasons why someone moves. You get a new job or a job transfer. That remains relatively stable as far as a
motivation. To look for work, loss of a job or whether
or not you retired are very similar motivations over time. My favorite section of this graph ends up
being the right-hand side. Notice all of these are motivations that are
becoming more and more prevalent. People cite them more often for why they move. The black one I like to joke about. When someone says greater and greater motivation
for moving is to establish one’s own household, I think it’s just because it’s a harder thing
to do these days. It’s a harder thing to form your own household,
to afford housing without roommates or to afford housing without living in your parents’
basement. For the millennial generation, what we actually
found was that the dominant strategy for “How do you afford to live?” is you move back home. People are spending longer and longer in their
parents’ home so to say, “I moved to establish my own household and that was my primary reason,”
often they think of as a pride point. It’s a hard thing to do these days in the
affordability climate that we live in. The other two I think are important. For easier commutes. To the extent that people have to move for
easier commutes, if you could emphasize bus routes, public transportation options or ways
to connect with someone for carpool, these are all bigger and bigger reasons why people
need to change locations. Also, for cheaper housing. We’re in an affordability crisis. Incomes have not really kept up pace with
the cost of housing. A lot of it has to do with what we’ve already
talked about. It’s hard for supply to respond to increases
in demand, not just because we’ve got people who are stuck in their homes due to being
under water or having negative equity but also just because it’s hard to build. You’ll see that a lot of the building that’s
happening around has been in the more luxury end or in the multi-family space, and it has
seemed like fast growth in many metros. There are apartment buildings popping up everywhere. I assure you that those permits and that building
that’s happening in many areas is actually nothing compared to the growth of the population
in these cities as people seek employment, following growth in jobs. It really is putting pressure in housing markets. It’s good for your business because it means
prices will continue to go up, but it is a challenge for your clients in order to afford
housing. Serving those groups may benefit you to have
a sensitivity to that understanding. We do a couple of surveys every year. One of the new ones that we’ve done is when
we look at rental affordability we do see that rent is becoming more unaffordable in
a way that mortgages have not. That’s because mortgages benefit from low
mortgage rates. We can see that in the next slide in terms
of what you’re competing against with these clients, their ability to maybe buy a home,
maybe at a low down payment and maybe that can actually be an affordable option for them. We went out and asked hundreds of current
renters why they don’t own. “Why don’t you buy a house?” The resounding answer was about income affordability. Fifty-three percent of renters who we asked
that question said the reason why they don’t own is because they can’t afford it. Interestingly, I think the biggest reason
within this bucket is they can’t afford maintenance, taxes and monthly payments of home ownership,
and I think that’s actually an important thing to highlight for you guys. I think you recognize one of the services
that you provide as property managers is to maintain a property. That is a stressful option for many people
who are thinking about buying. “What if my pipes break?” or all these other
issues that happen to homes that are expensive maintenance. That’s something that they do seek to avoid
as far as that is an expensive element. It does come top of line, notice, even before
whether or not they have the ability to qualify for a home loan or even before having the
down payment saved for a home. I was surprised that that one came below the
maintenance, taxes and monthly payments. To the extent that you can emphasize the great
services you provide so that these renters can avoid maintenance and avoid these other
expenses that might happen with home ownership, that’s a service that you render. The secondary one, and this is what you can
also capture, is the walkability of your area, your lifestyle preference in the sense that
maybe you enjoy those services or you enjoy the amenities in your rental complex or maybe
it’s just the case that by renting they can better afford the size that they’re looking
for. I don’t really know what people mean when
they say, “I simply prefer to rent,” but, hey, they’re out there. Maybe it means that instead of putting their
money into a down payment they really enjoy investing in stocks and bonds, so you may
have some killer investors within your properties. It’s certainly possible. Then of course there’s uncertainty. SFR renters and renters in general are more
transient. They don’t know how long they’re going to
live in a place. They might not live there long term and renting
of course is a viable option for those groups. This last slide is just emphasizing the conditions
on average that your clients may be under in the sense that rents have become more and
more unaffordable over time. They have to employ more strategies like doubling
up, adding roommates, living with family, living farther out and accepting higher costs
of commute in order to afford housing. What I’m referring to is that green line. That’s the share of median income that the
average US American would expect to pay on the median rent in the US. What you can see is that that green line has
simply increased over time. That blue line is the average mortgage affordability,
so it’s the share that you would pay out of your income on a mortgage payment. I’ve got to emphasize that that’s just the
mortgage payment. It doesn’t include those super valuable services
that you guys provide in terms of maintenance, property taxes and all the stuff that you
handle, but in terms of the mortgage itself, that’s far more affordable than historic terms,
than pre-bubble years, and a lot of that has to do with mortgage rates. As of right now, what you can lose to your
business is competing with the starter home. Those that can afford to put a small down
payment down and move into that unit very well could mean more affordable housing, a
lower monthly payment for those renters that can swing it. There are a lot of barriers in terms of you’ve
got to have that down payment in the first place or you’ve got to be able to find the
inventory out in the home-buying market, which we already emphasized at the beginning of
this talk is hard to do. In closing comments, all I want to say is
that we live in a world where there is just so much information at our fingertips. For those that are data savvy, you have access
to so many metrics and insights. If you want to be a data nerd too, download
this data that we have on our website. You can visit HYPERLINK “http://www.Zillow.com/data”
www.Zillow.com/data and download what the average rent is per square foot, what the
average home value is in an area and how rent has changed over time. These are all metrics that you can empower
yourself with if you want. Let’s say you’re data light. You’re not data heavy and you’re not going
to download these CSVs, but you just want a little bit of insight. I should have changed this example. I included a picture on the left that you
see on your screen of the Zillow Market Overview. It says real estate. I should have included the green one we have,
which is Zillow Rentals. That looks at different cities in your area,
what’s happening to rent in those areas and where rent is increasing faster or slower
than others. That can be a good resource. We update it once a month. Print it out, take it to your business meetings
and empower yourself to knowing what’s happening in your market. If you just want to be extra light and you
want to read things that we produce, check out our website, HYPERLINK “http://www.Zillow.com/research”
www.Zillow.com/research, and read some of the articles we have up online. We’re focusing more and more on rents and
what’s happening in rental markets and being able to explore your space, in other words. We’re doing more and more of it. I guess now I’d love to take some questions
and answer anything that you’d like. Ask an economist. Stephanie: Skylar, we have a couple of questions
that came in during today’s session. The first one was, “Can you offer a few examples
of ways to attract or advertise to SFRs?” Skylar: I cannot. I am such an economist and data person, but
certainly not a marketer. Krista, do you want to jump in? Krista: Sure. I think there’s one thing that Skylar emphasized,
which is what are the amenities around your property that would be attractive to SFRs? For example, the daycare or close to the transportation
options, such as bus stops or commuter stops. Also, you want to make sure that in those
ads that you’re including all of those details, so if there are other amenities or what the
assigned school district is for those, you just want to be clear about it in the ad so
people, before they contact you, have as much information up front so it doesn’t waste either
of your time. Stephanie: Great. Thanks for that. Here’s another one that came in. “Do you have any insights or thoughts on technology
use among SFRs versus MFRs and the best way to reach them like mobile usage, laptops,
etc.?” Do you have any thoughts on that? Krista: I don’t really have any specific data
on the general population, but I can tell you that in terms of Zillow’s mobile apps
we have 70% usage over the weekends and it’s about two-thirds during the week, so apps
in particular or mobile devices are extremely important. In general, I think you’ll see that almost
everyone is looking online for their rentals. Skylar: The largest generation is the children
of the boomers. They’re the millennials and they’re renting
for longer. They’re delaying marriage and baby. They’re going to be renting for longer and
longer periods of time. This is the generation that was the first
ones to get the cell phone. We’re very attached with it and we’re very
enamored by it, and it becomes a more and more important part of how they just experience
their world and they’re going to be a bigger and bigger share of your business, the young
families right now. Stephanie: Great. Here’s one that came in. “How can we drill into the demographics and
rental pricing averages and trends in our local market where our rentals are located
via Zillow?” Skylar: In order to really illustrate what
kinds of income levels are in an area or just what kinds of renters are out there, we do
all sorts of analyses at different times. It can be kind of hard to predict when we’re
going to come out with what, but the census has all of those kinds of information. You do have to be a little bit data savvy
to access it, certainly at the local level. That’s a hard one. It’s sometimes hard to know really small at
a local level what those demographics look like and their changes over time. Sometimes we have information about it that
drills down and we can provide demographic maps or different things like that. It just depends if that’s one of our research
endeavors in the near future. Where can you find it? Do we have that stuff on our local pages? Krista: I don’t think so. Skylar: Not the demographics, just more about
the market itself. Krista: I think there was something on the
vacancy, but not demographics at local levels. Skylar: It is a hard one to find out and drill
down into narrow areas. Even as a researcher it’s tough to do. Stephanie: There’s another one about the data
drill. “Does it drill down to secondary markets or
just primary major markets?” Skylar: If you’re talking any information
about the market itself, in other words, prices, median, median list price, median rental list
price, even inventory sometimes, we drill down to the neighborhood level. We can provide information at very small geographies
in terms of what’s happening to rents in that space and what’s happening to home values. All of that can be found at HYPERLINK “http://www.Zillow.com/research”
www.Zillow.com/research. In terms of market data, yes, we have that
down to pretty small geographies. Stephanie: Great. Thanks, Skylar. We have a lot more questions coming through,
but we want to be thoughtful of everyone’s time, so if we didn’t have time to answer
your question via the chat box, you can find them in the Q&A section of the blog post. I want to thank Skylar once again for this
informative presentation. Thank you so much. Skylar: Thank you for having me. Stephanie: When signing off, you’ll be asked
a few questions. We always love to hear feedback on the quality
of the webinar and anything we can learn from you is always valuable. Like I mentioned before, if you’re not in
love with your current property management software, now is a great time to raise your
hand and let us tell you a little more about AppFolio and how we can help you run a better
business. Thanks so much everyone. Have a great day. Thanks, Skylar. Thanks, Krista.

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