Today, Millennials play a huge role in shaping multifamily real estate trends. They are not only the largest living generation, but also the prime market for renting, buying and selling property. Complexes have changed their amenities and apartment designs in order to attract the millennial age group and is predicted to further influence housing stock across the U.S.
"The American dream has been redefined and ... I think it comes in that aspect of homeownership and the white picket fence ... I think that white picket fence moving forward might be a Starbucks and a gym," Altus Group Director of Research Chuck DiRocco said.
Focus On Fitness, Common Areas, and Desired Amenities
Having access to quality common areas and co-working spaces has become paramount for apartments built in the metros millennials are flocking to.
Affordable but Luxury
Total outstanding student loan debt reached $1.3 trillion in 2015 and the year prior, adults under the age of 24 had an average savings rate of -1.8%, according to KeyBank. This means the chances of this generation overwhelmingly buying single-family homes in the near future are slim.
Demand For Tech Connectivity Increases
Real-time and convenient technology that keeps tenants in the know is essential to the millennial generation. As such, demand for easy online communication and payments are rising.
E-Commerce Delivery Rooms and Lockers
Nearly half of millennials receive online packages at least three times per month on average and more than half are interested in having package lockers installed in their buildings, the NMHC reports. Hopping on the trend, Amazon rolled out its apartment locker service, The Hub, in July.
Income Generation through Home-Sharing
Large piles of debt have made the millennial generation both thrifty and entrepreneurial. Almost half of the millennials under the age of 25 are interested in properties that offer them the opportunity to make additional income using short-term rentals like Airbnb, according to the NMHC.
More Babies Calls For More Bedrooms
The generation, born between 1982 and 2004, according to an in-depth report in The Atlantic, is now between 13 and 35. “There are a lot of millennials and as they start having kids, a studio [apartment] is not going to cut it,” CoStar Portfolio Strategies Managing Director Hans Nordby said.
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