Private Rental Target Markets: A Comprehensive Spectrum

Abstract

The residential real estate market has been segmented dichotomously into owners and renters. Given the various tenures and sub-markets of the renters, it is problematic to consider them as a homogeneous target market. Based on a thematic analysis of semi-structured interviews with 16 residential real estate executives, this paper establishes six distinct private rental target markets including: 1) hard-to-house occupants, 2) affordability renters, 3) workforce residents, 4) transitional millennials, 5) lifestyle residents, and 6) returners. This paper is unique and noteworthy as it combines the fragmented literature on private renters with insights from residential real estate executives to produce a spectrum of target markets. In addition to validating the previous literature, this paper presents new target markets and offers marketing value propositions for each of the identified groups

Post-Pandemic Rental Housing Affordability Economics in the U.S., U.K., & Canada

“…Alternatively, it is just as likely that the older renters have never entered homeownership and renting becomes more difficult financially due to retirement and other income reductions. This data contrasted Wilson and Giuffre's (2022) argument that suggested as education increases, affordability "becomes less of an issue" (p. 141). A reason for this may be individual preferences.…”

“…The age difference may be due to returning renters. According to Wilson and Giuffre (2022), returning renters have purchased a home but as they age they "return to the rental market due to financial, marital, employment, or health reasons" (p. 150). It may be that these factors make renting less affordable as individuals age.…”

An international examination of market orientation and performance in residential property management

“…This is an important research contribution pertinent the USA, UK and Canada. In contrast to Tse's (1998) conclusions, this paper echoes the work of Wilson and Giuffre (2022) that maintains the importance of a market-oriented philosophy and a deep understanding of rental target markets for optimal competitiveness and superior performance.…”

“…In contrast, Wilson and Giuffre (2022) contend that the creation of a market-oriented organizational culture and target market identification should be top priorities for all real estate executives. Tay and Tay (2007) corroborate such claims, having found MO was correlated with marketing performance and overall business performance among property development companies in Singapore.…”