When it comes to choosing a place to live, young people choose renting. In fact, nearly 8 of every 10 millennial renters plan to rent and not buy, according to a recent Rent.com survey. The table below shows the percentage 25- to 35-year-old movers who were living at a different address the year prior.
|Millennials in 2016||74%|
|Gen Xers in 2000||62%|
|Late Boomers in 1990||67%|
|Early Boomers in 1981||61%|
Millennials love to rent for a number of reasons
- Millennials dig affordability. Since they have a greater student loan debt than previous generations, Millennials are have pushed back important financial decisions, including home buying.
- Millennials appreciate not being tied down to a location. Millennials also enjoy being able to live in a posh, trendy neighborhood without the high mortgage price tag. Additionally, Millennials fin that renting is a great way to preview the cost, and get a vibe of a neighborhood before making (or being able to afford) a long-term financial commitment.
- More and more millennials are delaying marriage and taking more time to discover what they want out of life. A 2013 Gallup poll indicates that getting married and having children are goals millennials pursue but not with the immediacy of previous generations.
- Millennials enjoy delegating projects to the landlord. As with most people who covet their free time, Millennials love the fact that when the bathroom sink leaks they just pick up the phone and call maintenance to deal with the issue.
Why property owners and brokers need to adjust and rebrand properties for millennials
With millennials comprising a large portion of the renter population, it is imperative for property owners and brokers to adjust and rebrand their properties accordingly to drive interest. According to RENTCafe, millennials are spending a median 45% of their income on rent and they want amenities to facilitate their flexible, comfortable lifestyle. The top amenities that millennial renters are demanding include multi-use common areas, premium laundry rooms, and pet-friendly accommodations.
When it comes to the common areas, Multifamily Executive notes that the tables, chairs, and other furniture should be lightweight and easy to move so renters can reconfigure and customize the common space to suit their personal needs. Be it a happy hour with friends, a nice place to read a book or work diligently on a laptop, tenants want common spaces to adhere to their in-the-moment needs.
Along the same line, millennial renters expect properties to accommodate their pets. As such, more and more properties are leaning towards hardwood flooring, rather than carpeting, in common areas. This provides a safe, sanitary location for pets. Some communities are even taking it a step further by providing on-site doggy daycare, dog parks and grooming facilities to make living with a pet easier for millennials.
Finally, millennials renters want more than just a boring one-room fitness center. They want a premium fitness studio with top-of-the-line workout equipment, classes, and a spa-like atmosphere.
What truly sets millennial renters apart from the rest of the pack is the fact that they want their apartments to be a place they can live, work and play.
Multifamily Executive notes that owners and managers that offer flexible common areas and amenities that make residents’ lives easier and fun are poised for success.
How are you tailoring your property to suit millennial renters? Comment below.