It’s no secret that the Millennial Generation is single handedly controlling the booming pace of the apartment market, as well as the wavering housing market. At more than 82 million strong, the Millennials are a unique generation in the way they live, work and spend their down time. Since this particular generation is a majority of your current and future renters, it’s important to know a few things about them:
- Millennials are getting married much later in life than previous generations. How much later? About five years later than previous generations. Therefore, this generation is forming families much later in life as well, so they are not in need of a huge two, or three bedroom apartment, which leads into the next point…
- The ideal living situation for the typical Millennial is going to be an affordable one bedroom apartment in an urban community.
- Millennials are willing to sacrifice square footage for a supreme location, so it doesn’t even have to be the size of the apartment that sells. Instead of unnecessary additional space in the apartment, Millennials desire more space in common areas where they can interact with other residents.
- Millennials will typically fall into one of two categories: those that are looking to have their own space and are willing to pay a little extra for a one bedroom apartment; or, those that are unemployed and back home living with their parents. With today’s “helicopter parents,” many Millennials find it hard to justify moving away from the pampered life at home.
- In order for a Millennial to be swayed to purchase a home, it’s going to have to be absolutely perfect and a safe investment for them to pull the trigger. Even then, this transaction is still a long shot. Getting a Millennial to commit to a home and mortgage payment can only be accomplished if they are actually committed to their job for an extended period of time, which many are not!
Millennials are changing the market and for the time being, it is a change for the better when it comes to the demand for apartment living. Demand is higher than it has ever been in most cities, but the question at hand is at what point will Millennials feel comfortable buying homes? When that point comes, there may be a huge swing in the industry and a tremendous amount of inventory left to lease.