Multifamily development and amenities trends

[William Hull]

Statistical data from the 2012 US Census shows that the growth rate of many cities in the U.S. has recently surpassed that of suburban areas. Much has been made of this in the media as an evolving trend. However, what the data doesn't reflect is that while the growth rate has increased in cities, the actual population growth has been trending in favor of the suburban areas. In short, it remains to be seen if the rising growth rate will actually become a long term trend. What is apparent today is that the next decade will bring with it increasing population of two major U.S. renter demographics which will encourage a push toward more urban type amenities in suburban multifamily development. Millennials and Baby Boomers will make up the majority new renters looking going into 2025. Just the sheer volume of these populations with push the demand for rentals to historic highs. Developers and investors alike are watching this trend and adjusting to meet the requirements of both groups. Studio and one bedroom apartments are becoming more of the focus to accommodate these renters. Additionally, developers are leaning toward more social and health amenities such as game rooms, pools and gyms that will fit in with both age groups healthy lifestyles.

Key Takeaways:

• While metro areas have seen growth, suburban areas have as well
• To meet the increase in sheer numbers of renters, developers are focusing on amenity choices
• Some of the most successful developments are ones which have the best mix of conveniences.

"Currently 67.1 percent of households between the ages of 18 and 34 rent their residences, the highest percentage of U.S. renters, and the sheer population size of this generation will organically add 2.5 million people into this core renter age cohort by 2025."

Read more: http://www.theinvestor.jll/news/world/05/multifamily-development-and-amenities-trends-to-meet-core-renter-lifestyle-demands/