Apartment Rental Cycles
Generations always differ from one another in a variety of ways – the culture in which they’re raised, their relationship with technology, their priorities, and their likes and dislikes. But there are also things they have in common. For example, in most generations, younger people tend to rent apartments and older people tend to buy houses. This fact has kept the rental market and the housing market buoyed for decades.
The current generation making the decision between renting and buying is the millennial generation, generally considered to be those born between 1980 and 2000. The oldest of this generation, now in their mid-30s, should be moving toward traditional home-buying. But research indicates that’s not the case.
Millennials are Defying the Trend
Many millennials are choosing to continue renting. Why? Part of the reason, surprisingly, is the evolution of transportation. One of the main downsides to living in a major city is trying to find something to do with your car; frustration with lack of parking and/or exorbitant garage fees is what drives many city dwellers to seek out a driveway of their own.
But now with so many options, including Uber, Lyft, and Sidecar, to mention just a few, millennials are living the dream – staying in the heart of the city, where all the action is, with transportation at the touch of a button.
What this means for the Apartment Rental market
What does this mean for the apartment rental market? If current trends continue, there should be plenty of young people seeking apartments, which will mean that apartment owners will be able to charge top dollar. Which these millennials will be able to pay, without car payments getting in the way.
As the oldest members of Generation Z graduate from college shortly and make their way out into the world, things should certainly heat up in the rental market!
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