PPG Offers Insight on Building Trends in Rental Market in the Second Half of 2022 and Beyond

As recent as a year ago, home ownership was more appealing than renting, as the cost to own and rent were almost identical. Now, in 2022, owning a home costs an average of $839 more per month than renting, per John Burns Real Estate Consulting. Due to these soaring home prices, the rental market is heating up and is expected to remain hot for at least the next five years, especially in places where home prices have risen the most.

As the recent buying spree evolves into that of renting, design and building trends are developing to meet renters’ needs.

As a major paint provider for some of the country’s biggest residential builders, developers and contractors, PPG has a unique pulse on what’s happening across the residential and multi-family construction industry. Leveraging insights from PPG’s work in the space, Vinny O’Sullivan, senior general manager for PPG’s Architectural Coatings business in the U.S. and Canada has identified the most prominent design and building trends we can anticipate in the rental market in the second half of 2022 and beyond.

CW: What is contributing to the increase in rentals versus buying a home?

O’Sullivan: As recent as a year ago, home ownership was more appealing than renting, as the cost to own and rent were almost identical. Now, in 2022, owning a home costs an average of $839 more per month than renting, per John Burns Real Estate Consulting. Due to these soaring home prices, the rental market is heating up and is expected to remain hot for at least the next five years, especially in places where home prices have risen the most.

CW: What are the trends in design and building as related to rentals?

O’Sullivan: As it relates to rental design, currently, PPG is seeing a move to a more neutral exterior color palette—warm undertones in a neutral palette of creamy whites, beiges and grey colors. Some properties have adopted the warm white on white approach as well, but no bright whites.

There are always exceptions to trends, especially in more avantgarde cities such as Austin or Miami, where we do see some bolder and brighter color palettes on exteriors, but this is the exception.

Interior colors in rentals are on the subtle side as well. For interior spaces, we are seeing a lot of neutral palettes. Currently, we’re not seeing a lot of properties updating or engaging in the accent wall programs. When it comes to investing in amenities, we find that rental properties are putting their dollars more toward technology investments rather than in design.

On the building side, PPG has seen a shift towards rental spaces being built or remodeled to accommodate multi-family living—a result of consumers moving in with loved ones due to the pandemic or to further cut down on cost of living in this expensive housing market. That said, PPG has identified Cotton Tail (PPP0998-1),  Willow Springs (PPG1007-1), Fog (PPG10110-2), Pacific Pearl (PPG1011-1) and Elemental (PPG1011-2) as the top 5 PPG interior colors utilized in Multi-Family spaces.

PPG continues to see a desire among residents to customize their rental spaces and bring forward a sense of individuality. 

CW: Specific to paint and coatings what are the trends driving the market (an increase in Pro vs. DIY?)?

O’Sullivan: Curb appeal is king and drive-by is the number one way that people ultimately select where to rent.

CW: How often are rentals being painted?

O’Sullivan: According to research conducted by IBIS World, a rental is painted every 3-5 years on average.

CW: Do you expect the trend of increased rentals to continue through 2023?

O’Sullivan: Yes, we expect rental demand to remain strong over the next 5 years, especially in areas where home prices have risen the most. In fact, according to the National Association of Home Builders, the most common reason potential home buyers cite for not buying a home is their inability to find an affordable home. So, as long as there is high inflation and slow economic growth causing high home prices, the strength of the rental market will continue.