The Millennial Rental Boom and its Impact on Multifamily Housing
March 16, 2017 at 12:48 PM
Millennials, the label given to people between the ages 20-36, are currently leading a giant rental market boom. Per 2015 U.S. Census Bureau statistics, “home ownership rates for adults aged 35 and under was 35 percent, compared to 70 percent among adults aged 45-54.” Millennials are also 9 percent more likely to live in cities than previous generations, per a recent Pew Center report.
Since the 2007 housing market crash, multifamily housing has been the leader in the recovery, increasing by 43 percent. This progress was driven by an increase in rental demand, particularly from millennials. The rental boom is predicted to continue from now until 2024.
There are many contributing factors which have led millennials to lead the charge in the rental boom. The first, is that most are strapped with thousands of dollars of student loan debt. Because they want to get a handle on that debt before taking the next step in life, they tend to chase their dream jobs. Millennials do not want to be or cannot afford to be stuck in one geographical location. They want the ability to move quickly and conveniently if a new economic opportunity presents itself.
Another factor is that millennials are going green and spending their money on experiences instead of cars. Due to this, the need to live somewhere near their workplace, shopping, dining and other entertainment or have those luxuries be provided on site.
With the rental market being so competitive, millennials are looking for multifamily housing options with top notch amenities. Unlike the generation before, which valued size over other conveniences, they would gladly trade a two bedroom for a one bedroom or studio if the location was great, or if the complex offered something else they wanted, like a fitness center, pool, movie room, dog park, or in unit washer and dryer.
Keeping these units in top shape is of the upmost importance. One simple way of keeping these multi-use or multi-family units pristine is to prevent possible water damage to floors and other nearby units by installing a Suds Sentry washing machine pan! For more information on how Suds Sentry can protect your property visit https://www.spdpsolutions.com/suds-sentry/product-information/