Multifamily Sector

Affordability: Renting has historically offered a more affordable alternative to homeownership, especially in high-demand markets. Beyond mortgage payments, homeowners face additional costs—such as property taxes, insurance, and maintenance—that can significantly increase the financial burden. When using 4% of home value as a proxy for these added expenses, national homeownership costs are nearly twice as high as current average rents.¹ This cost gap continues to position rental housing as a financially accessible option for many households.

Rent Vs. Own Comparison¹

Demographics: Population trends are fueling demand for multifamily rentals.  Many Millennials, now the largest population segment in the U.S.,² are choosing to rent over owning due to high home prices, rising interest rates, and a desire for flexibility in lifestyle and location. Renting offers lower upfront costs and fewer long-term commitments—making it a more accessible and adaptable option.

Baby boomers are also shaping rental trends. Many are choosing to downsize in retirement, seeking low-maintenance living and greater freedom to travel or pursue leisure activities. This group is increasingly relocating to be closer to urban amenities, natural attractions, or family—adding another layer of long-term support for rental housing demand.

Data as of May 2025

1 Monthly housing cost = monthly principal and interest based on 30-Year mortgage rate (FRED –MORTGAGE30US) and median sales price of homes sold U.S. (FRED – MSPUS) plus a 4% of total home value added as Operating costs of owning a home (Operating Costs of Owning a Home - National Association of Home Builders); Rent = Realpage Effective Rent

2 https://www.pewresearch.org/short-reads/2020/04/28/millennials-overtake-baby-boomers-as-americas-largest-generation/