By 2030 America needs to build at least 4.6 million new apartment homes and renovate as many as 11.7 million older existing apartments in order to meet the country’s growing demand.1
The two largest generations, Millennials and Baby Boomers,2 have increasingly become renters due to various economic and lifestyle factors.
Young adults are delaying home ownership due to the fact that people are getting married and having children later in life. Renting is more attractive than the burden of owning a home.2
Student loan debt is at all-time highs and burdens potential homebuyers in the eyes of mortgage lenders, thus facilitating the growth of long-term renters.1
Limited savings for a down payment, interest rate volatility, credit worthiness and the rising cost of home ownership, preclude many individuals from buying a home.3
People will always need a place to live. Apartment living provides cost-effective shelter to renters with the flexibility of a short 12-month lease relative to other long-term commitments.
1: NMHC, NAA: US Apartment Demand – A Forward Look
2: 1990 and 2000 Decennial Censuses and the 2015 American Community Survey
3: Credit Bureau Data and the Urban Institute The Decennial Census and the American Community Survey.