Millennials have been driving the demand for apartment rentals, especially in urban areas. Millennials or members of Generation Y prefer renting over buying so much they are being called “Generation rent.”
According to a recent article by Zillow, home ownership recently hit an 18-year low. Home ownership isn’t the American dream for a lot of Americans.
- Getting out on their own
Many Millennials lived at home longer because of the Great Recession and high student loan debt. Paying rent on time can boost credit scores, which helps young people when they want to become eventual homeowners. Being able to rent an apartment is a milestone for many people in their 20s and early 30s.
- Having flexibility to move
Some Millennials prefer to rent because they want the flexibility to move for job or travel opportunities. They just don’t want to be tied down. If they had friends or family who bought during the housing bubble and were underwater on their mortgages, they are understandably skittish about home ownership.
- Being close to the action
An article by City Lab points to recent studies that show Millennials gravitate to walkable urban areas with good schools, parks and public transportation. Millennials are also marrying later in life and experiencing divorce, which may propel them back to apartment rentals because of the more social atmosphere.
- Minimizing energy consumption
Living in an apartment with less square footage is a simple way to conserve energy. Apartment dwellers reduce their carbon footprint by living in walkable neighborhoods. Many apartment rentals today are the result of environmentally-sensitive developers that have the “green” customer in mind.
For more information on finding thoughtfully-designed apartment communities, contact us.