Millennials have a large influence on housing trends. This generation will number about 70 million plus in a couple of years, and their buying/renting habits will have a profound effect on the multifamily real estate market. Some of the
Millennial families are growing at a fast pace:
Many cities in the US have only one to two person family units as housing stock. Recent studies have shown that even though the median age at which millennials get married are later than the national average; they do not tend to wait to have children, but have them in a short span of time. A studio apartment will not satisfy these categories of millennials because they want/need more spacious housing. In spite of this, the current multifamily housing market does not take this into consideration and more than 50% of new apartments consist mainly of one bedroom or studio units. The well-known national market research organization Gallup predicts, as millennials age, there is a boom waiting to happen and larger apartments will be snapped up. It is certainly the best time to invest in two plus bedroom apartments.
Key to good apartments are it amenities
Large common areas and co-working areas tend to attract the millennial generation like a magnet. In many market studies, the common finding was that millennials attach great importance to the amenities available in an apartment block. Fitness centers, grills, outdoor recreation areas, WiFi, yoga and even spas are the rage among this generation. Real Estate developers have started paying attention to this aspect. Investing in multifamily apartment complexes with such amenities is a good investment.
Amenities provided should be affordable
The outstanding student debt has climbed to $1.30 trillion by 2015 and adults below 24 years of age have a slightly negative savings rate. Due to debt burdens, millennials are not expected to purchase apartments but rather rent those that have the desired conveniences such as those listed below.
- Round the clock security guards
- Concierge services
- Washers, dryers and dishwashers within the apartment
- Smart controls for HVAC
- Dog parks and pet washing stations
- Electric car charging stations
When multifamily housing complexes have these facilities and competitive rents, it tends to attract a large number of millennials. Multifamily housing complexes are an attractive buy.
For millennials connectivity is a “must have”
Today’s millennial generation lives in a tech connected world. Online payments, communications etc. is multiplying manyfold and it is estimated that of the 70 million millennial households, almost all prefer to live with tech connectivity. Inclusion of connectivity in multifamily complexes would be a strong factor in attracting this generation. Millennials, as a group, will have a large impact in the present and future real estate market. Real Estate developers, who factor in millennial preferences, will maximize their returns on investment.
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