Millennials have come of age in challenging times. Younger adults ages 18 to 34 are currently facing an 8 percent unemployment rate and around $1 Trillion in student loan debt. It should come as no surprise then that a growing number of 20-somethings are choosing to rent instead of buying a home. In fact, Jed Kolko, Chief Economist for Trulia reports that home ownership for those ages 18-34 has fallen to about 13.2 percent, a new low in many metropolitan areas. The philosophy seems to be, if you’ve got to start out saddled by student debt, why not at least enjoy a little luxury (and a lot of options)?
Renting is a Top Option for Millennials
Apartment rentals have become the primary housing solution for younger workers in the Washington Metro area—as well as in other metro regions around the nation. Ryan Jenkins, author of The GenEdge, mentioned recently that, “59 percent of millennials would rather rent a house than buy one and only 1 in 4 are likely to purchase a house in the next 5 years. “
Why are apartment rentals so appealing to millennials? It’s not simply a matter of finances.
Affordable Luxuries
Amenities matter. Many apartment buildings feature cool amenities that appeal especially to younger tenants, like onsite fitness centers, movie screening rooms, electric car charging ports, underground garages, unlimited Wi-Fi and cellular service – all provided for free to residents. These small luxuries would cost a fortune as a la carte services, so bundling them economically into a rent payment represents a major plus for this demographic.
Instant Community
In the transition from college life to career and family, apartment complexes with shared community resources offer an ideal setting for building new friendships. It’s the promise of instant community—without the long-term commitment. And features like meeting rooms and coffee bars allow for impromptu small gatherings. Being able to enjoy downtown clubs, restaurants, and other entertainment without having to move to the suburbs is a plus too.
Maximum Flexibility
Renting is the perfect solution for a generation that prizes the freedom and autonomy of a nomadic lifestyle. On the popular social commentary blog The Cultureist, Britany Robinson comments “We’ve seen the demise of the housing market, we’ve experienced the pain of digging our way out of debt, and we know the freedom of location-independence is available if we’re interested.”
And then there’s the matter of simple economics. According to the US Department of Labor, millennials tend to change jobs more often than older workers, and on average stay with any one employer for three years or less. It's a sign of an economy that’s still limping toward recovery. This younger generation of workers, having come of age in a time of huge economic uncertainty, tends to prioritize flexibility. And renting an apartment offers the ultimate lifestyle flexibility. Another plus? Apartments often come with a variety of leasing options, allowing tenants to leave on short notice to pursue a new opportunity.
Lifestyle Upgrade
While the “lifestyle upgrade” apartment complexes offer make them a top option among younger renters, the growing demand for rentals crosses property types. Landlords for single-family residential properties are seeing the trend as well—as this infographic by a Northern Virginia property manager attests. Private homeowners facing relocations are, more and more often, choosing to rent out their homes to await better home prices and a stronger first-time homebuyer market.
And how will they compete for millennials’ business? By bundling in plenty of amenities—and keeping leases flexible.
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