Did you know that nearly 40% of renters live in apartments? There are also millions of renters across the country. We look at some of the most recent stats gathered by the National Multifamily Housing Council (NMHC), and why the multifamily market is poised for another good year in today’s BAM Blog…
According to the data on NMHC online, 37% of renters in America live in apartments and there are 43 million households who rent across the country! According to the data (compiled in 2019), the ages for renters break down as below:
- 30-44 years old 33%
- 45-60 years old 30%
- Under 30 22%
- 65 + 16%
It may come as a surprise the the youngest generation is actually one of the smaller groups renting; however, that’s consistent with the trend for the last several years. As home prices have increased along with the cost of new home construction, the age groups that traditionally make up homeowners have increasingly turned to apartment communities. Within those age groups, there are also many residents who prefer the flexibility and amenities of many of the Class A, or lifestyle asset class. As we’ve mentioned previously, much-to-most of the new apartment inventory delivered in the last year has been luxury, Class A properties.
According to a prediction on RentalHousingJournal.com, 2020 will see more of what the multifamily market has already experienced: the two largest generations making up a healthy segment of renters. Both Millennials and Baby Boomers have increasingly turned to rentals, but for different reasons. Millennials are often looking for affordability, city living, tech features, and flexibility for job growth and mobility. Baby Boomers are often downsizing a large family home, and looking for convenience, low-maintenance, and high-end features.
In the upcoming year, home prices will likely remain out of reach for many, and the reasons driving many to rent remain consistent. As we stated in this previous article, 2020 is off to a fair start, and the strong fundamentals underpinning the industry will likely lead to a positive year for the market. As we’ve written previously, BAM founder and CEO, Ivan Barratt, does not predict a recession for 2020; however, he does predict low growth.
Want more info on multifamily investing? Go to investments.barrattassetmanagement.com and sign up for an account. Once there, under “offerings” you’ll find a free library with articles and videos featuring Ivan and his insider knowledge and insight, as well as a ton of info on BAM, its team, track record, and offerings.