2016 RENTER SURVEY 1

Survey Methodology 1,000 online surveys of California renters conducted in March Sample error: 3.1% at 95% confidence interval. Sample weighted by ethnicity and age/generations according to 2014 U.S. Census Bureau data. 2

THE RENTAL RESIDENCE 3

Renter Residence Location 4

Majority of Renters Have Been in Their Current Residence Over 3 Years Q.How many years have you been renting your current residence? 5

Time in Current Residence is Down Q.How many years have you been renting your current residence? 6

Median Years Renting: 8 Q.How many years have you been renting (including your current residence)? 7

Those Who Have Never Owned a Primary Residence Have Rented Longer Q.How many years have you been renting (including your current residence)? 8

Gen X Has Been Renting Longer Than Baby Boomers Q.How many years have you been renting (including your current residence)? 9

More Single Family Home Rentals Q.What type of home do you rent? 10

Number of Bedrooms Slightly Higher Q.How many bedrooms do you have? 11

Number of Bathrooms Nearly Unchanged Q.How many bathrooms do you have? 12

¾ Households Contain Fewer Than 3 People Q.How many adults age 18 or older live in the home? Q. How many children under 18 live in the home? 13

Household Size Declined Q.How many adults age 18 or older live in the home? Q. How many children under 18 live in the home? 14

More than Half of Renter Households Do Not Have Children Q.How many adults age 18 or older live in the home? Q. How many children under 18 live in the home? 15

More Adults, Fewer Children in Renter Households Q.How many adults age 18 or older live in the home? Q. How many children under 18 live in the home? 16

Fewer Singles With Kids in

More Single Females With Children Renting 18

Many Found Rental Through Friend/Relative Q.How did you find the home you are currently renting? 19

32% of Rentals are Under Rent Control Q.Is your apartment under rent control? 20

Monthly Rent Has Increased 14% in 3 Years Q.How much is the monthly rent? 21

Monthly Rent is Nearly 10% Lower Under Rent Control Q.How much is the monthly rent? 22

Average Rent Higher in 2016 for All Dwelling Sizes Q.How much is the monthly rent? 23

Rent Lower Under Rent Control Q.How much is the monthly rent? 24

Time of Last Rent Increase Q.When did your monthly rent last increase? 25

Time of Last Rent Increase Q.When did your monthly rent last increase? 26

Monthly Rent is $100 Higher than on Move-in Day Q.How much was the monthly rent when you first moved in? 27

Monthly Rent Increase is Twice as High in Non-Rent Control Residence Q.How much was the monthly rent when you first moved in? 28

Majority Uncertain How Long They’ll Live in Current Residence Q.How much longer do you intend to live in your current residence? 29

Less Tenure Uncertainty Under Rent Control Q.How much longer do you intend to live in your current residence? 30

Majority Plan to Continue Renting Q.Do you plan to rent again after you move from your current residence? 31

More Millennials Plan to Buy a Home 32 Q.Do you plan to rent again after you move from your current residence?

More Hispanics Plan to Buy a Home 33 Q.Do you plan to rent again after you move from your current residence?

Those Who Plan to Buy Have a Higher Income 34 RentBuyLive w/Relative Other Plans Median Age Median Income$35,000$55,000$25,000$35,000 Median Years Renting 96310

Affordable Price is Most Important Reason for Selecting Rental Q.What was the most important reason for selecting the place you currently rent? 35

The Majority Have Not Searched for a More Affordable Rental Within the Past Year Q.Have you searched for a cheaper rental within the past year? 36

1/2 Under Rent Control Have Searched for Cheaper Rental Within Past Year Q.Have you searched for a cheaper rental within the past year? 37

What Renters Dislike Most About Current Residence Q.What do you dislike most about your current residence? 38

What Millennials & Baby Boomers Dislike Most About Current Residence Q.What do you dislike most about your current residence? 39

RENTERS AS FUTURE BUYERS 40

8.5% of Renters Currently Own Real Estate Q: Do you currently own real estate? 41

31% of Renters Have Owned a Primary Residence Q: Have you ever owned a primary residence? 42

74% of Previous Owners Sold Primary Residence Majority Sold after 2006 Q.What year did you sell your primary residence? N=363 43

Many Sold for Family Reasons Q.Why did you sell your primary residence? N=363 44

Nearly Half Rent Because They Can’t Afford to Buy Q.Why do you rent instead of buying? 45

Nearly ½ Renters Plan to Buy a Home Q.When do you plan to buy your next home? 46

Majority Under Rent Control Plan to Buy a Home Q.When do you plan to buy your next home? 47

Improved Personal Finances & Lower Home Prices are Biggest Motivators to Buy Now Q.What would most motivate you to buy a home now? 48

Majority Will Buy in Same County/Neighborhood Q.Where do you plan to buy your next primary residence? 49

Many Leaving Current Area for Lower Housing Prices & Better Neighborhood Q.Why are you planning on leaving the area where you currently reside? N=692 50

Many Leaving Current Area for Lower Housing Prices & Better Neighborhood Q.Why are you planning on leaving the area where you currently reside? N=692 51

3/4 Renters Plan to Buy a Single-family House Q.What type of residence do you plan to purchase? 52

Condos/Townhomes are Most Desired by Silent Generation Q.What type of residence do you plan to purchase? 53

Nearly 2/5 Renters Plan to Buy a Home that Will Accommodate their Parents/Adult Children Q.Do you plan to buy a home to allow for your parents and/or adult children to live with you? 54

Millennials Most Likely to Buy a Home that Will Accommodate their Parents/Adult Children Q.Do you plan to buy a home to allow for your parents and/or adult children to live with you? 55

Hispanics Most Likely to Buy a Home that Will Accommodate their Parents/Adult Children Q.Do you plan to buy a home to allow for your parents and/or adult children to live with you? 56

Nearly 1/5 Renters Plan to Pool Funds with 2 Family Members, on Average, to Buy a Home Q.Do you plan to pool your funds together to buy a home with other family members? 57

1/5 Millennial Renters Plan to Pool Funds with Family Members to Buy a Home Q.Do you plan to pool your funds together to buy a home with other family members? 58

Majority of Renters Will Start Home Search Online Q.How would you begin your search for a home to purchase? 59

2/3 Renters Have Made Preparations to Buy a Home Q.Have you made any of the following preparations to buy a home? Please select all that apply. 60

Renters Who Plan to Buy Have Almost Twice the Income 61

Zillow is Most Visited Website Among Renters Preparing to Buy Q.Which websites did you visit? Please check all that apply. Other 62

½ Renters Don’t Expect to Buy a Home in the Future Because they Can’t Afford It Q.Why don’t you expect to buy a home in the future? Please check all that apply. 63

62% of Renters Have Debt That Would Make It Difficult to Buy a Home Q.What type of debt do you have that would make it difficult to buy a home? Please check all that apply. 64

Median Credit Score: % of Renters Did Not Know Their Credit Score Q.What is your average credit score? N=869 65

Home Ownership is Important to Most Renters Q.How important is homeownership to you on a scale of one to ten? 66

Home Ownership Importance Declined Q.How important is homeownership to you on a scale of one to ten? 67

Advantages of Home Ownership Q.In your opinion, what is the greatest advantage, if any, of homeownership compared to renting? 68

RENTER DEMOGRAPHICS 69

The Typical Renter 64% minority 39 years old 42% single 39% college degree annual income: $40k 70

Northern California Has Highest Income & Rent Northern California Median Income: $50,000 Median Rent: $1,500 Other Median Income: $34,000 Median Rent: $878 Southern California Median Income: $40,000 Median Rent: $1,250 71

Renter Generations Q. What is your age? 72

Renters Are Younger Q. What is your age? 73

Gender Q. What is your gender? 74

Marital Status Q.What is your marital status? 75

Education Q.What is the highest level of education you have completed? 76

Baby Boomers & Gen X are Most Educated Generations 77

Asians are Most Educated Ethnic Group 78

Ethnic Background Q.What is your ethnic background? 79

Gen X & Millennials are More Diverse Generations 80

Majority of Renter Annual Household Income is Below $50,000 Q.What is your annual household income? 81

Renter Household Income Unchanged Q.What is your annual household income? 82

Asians Have Highest Household Income 83