I was reading through my copy of the REALTORS Commercial Alliance Report last evening and specifically a story titled Who Are Tomorrows Renters?
Thought I would share a couple of exerts from the article:
“I’m really bullish on multifamily demand” says Leanne Lachman, president of Lachman Associates…
Projections by the Joint Center for Housing Studies at Harvard University estimate that around 2 million new households will be formed between 2005 and 2015. Rising interest rates and booming growth in many traditionally renter demographics make it likely that apartments will receive a proportionately higher share of that growth than they have in the last few years.
Between now and 2020, 4 million Americans or more will be turning 18 each year.
While an average of 31 percent of all U.S. households rent, the number jumps to 74 percent of those under 25 years old and stays at 59 percent for households between 25 and 29 years of age…
Some households rent as a lifestyle choice, avoiding the costs and inflexibility of home ownership. Indeed a 2006 JCHS study found that some 20 percent of renters had incomes above $60,000. However, the majority of long-term renters are there because of economic necessity.
I find this all a great indicator of growth. Especially in the areas of town that will appeal to the upcoming youth. Close to business centers, nightlife and where space is affordable. Know of any areas that fit this description?