So what's driving demand for apartments
Many factors are driving demand, starting with the demographic surge of 20 to 34-year-olds, who are typically renters. This increasing population also has absorbed most of the job growth during the economic recovery and no longer relates to the "American Dream" of homeownership. This demographic is more likely to transfer jobs every few years and even relocate therefore they do not want the ball and chain of a house to hold them back. In general, very few renters are leaving the mulit-family market to buy homes due to weak job security and a shaky housing market. This means that new tenants typically boost the already impr1essive occupancy rates since existing tenants are not moving out. The continued foreclosure crisis and declining homeownership rate are also fueling demand for rentals, every 1% decline in homeownership represent 1,300,000 people entering the rental market. The odds are in favor of the "landlord" today.
Comments (2)
The population has grown much faster than new housing and apartments for the past few years. Pent up demand is driving rents up and vacancies down,
Jon Klaus, over 13 years ago
That...and banks aren't lending money to anyone right now. Getting new purchase money has to be one of the most frustrating things a person can do right now.
Bryan Hancock, over 13 years ago