Multifamily Residential - A Demand Story

Sustainable Strong Demographic Shift

The multifamily apartment sector is experiencing significant demand driven by changing demographics. Millennials, the largest generation ever, are choosing to rent versus own and Baby Boomers, the second largest generation, are showing interest in downsizing after many years of living in their own homes.

Generation Ages Size (Millions) % of U.S. Population
Greatest 68+ 35.2 11
Baby Boomers 48-67 80.3 25
Generation X 38-47 40.9 13
Millennials 18-37 86.0 27
iGen 0-17 74.0 23

Source: US Census projections for 2013 based on 2010 Census. Barron’s, “On the Rise,” April 29, 2013.

Renters by Choice – Millennials and Baby Boomers

Millennials and Baby Boomers continue to rent by choice. A majority of newly formed households chose rental housing, a consistent trend since 2007.

Source: U.S. Census Bureau, Haver Analytics, 2015

Share of All U.S. Households that Rent

This represents the highest level since the mid 1960’s.

Source: America's Rental Housing, Joint Center for Housing Studies of Harvard University, 2015.

Millennials and Baby Boomers – A Landlord’s Delight


  • Love of Amenities

    Including electric car
    charging ports, gyms
    and cellphone reception
    in all areas

  • Love of Community

    Including community
    and shared spaces
    and proximity to
    culture and nightlife

  • Love of Flexibility

    Being able to terminate
    lease or choose not to
    renew for any reason,
    especially career reasons

  • Love of Convenience

    Keeping home
    maintenance and yard
    work out of budgets, and
    out of weekend to-do lists

Why Millennials Prefer Renting:

  • High levels of student debt *
  • Desire for mobility to pursue job opportunities
  • Mortgage lending standards continue to be restrictive

* Source: Federal Bank of New York, $1.2 trillion of debt as of 9/30/15.

Baby Boomers

  • Love of Activity

    Including walkability and easy transportation to jobs and activities they love

  • Love of Luxury

    Apartments offer a more luxurious place to live with high-end amenities often not affordable with owning a home

  • Love of Convenience

    No responsibility for maintenance, which is a lifestyle perk that apartments offer

  • Love of Savings

    Renting saves thousands of dollars a year to enjoy life, travel and spend time with family versus the upkeep required for homes

Why Baby Boomers Prefer Renting:

  • Ready to downsize - an easy first step to retirement living options
  • Buying is often more expensive than renting
  • Selling a home later in life can be stressful and is a disincentive for baby boomers

Overall Population Growth

Existing demographic data shows the population of the United States is slated to grow by 45 million over the next 20 years.

U.S. Population Projection

  • Millions

    2020 335M
    2030 359M
    2040 380M
    2050 398M
    2060 416M

Source: U.S. Census Beureau.

Household Formations Trend Toward Renting

The growth in renter households reflects new households deciding to rent along with a growing number of households leaving homeownership.

Renter Household Growth Has Surged With the Drop in Homeownership

Note: Data as of 3Q 2015
Source: U.S. Census Beureau, Housing Vacancy Surveys.

As the rate of homeownership continues to decrease, the rate
of apartment living continues to increase.


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