Demographic Trends and Housing Costs Sustain Rental Demand
Millennials Are Reshaping Rental Housing Demand
- There are 73 million millennials, now in their late 20s to early 40s, that are coming into key life stages like marriage and family formation
- Apartment lease renewal rates have climbed to 55% as fewer renters move into homeownership
- Enhanced amenities, modern designs, and better services have made rental housing more attractive
Affordability Challenges Are Reshaping Housing Decisions
- Home prices have surged, rising 6.1% in the past year and nearly 50% since early 2020
- The monthly cost of owning a median-priced home is about $3,100, compared to $1,830 for an apartment
- The median first-time homebuyer age has risen from 30 in 2010 to 38 in 2024
Limited Housing Supply Keeps Pressure on Rentals
- New single-family home construction remains low, keeping home prices elevated
- Mortgage rates show no signs of significant declines, reinforcing the affordability gap
- With fewer homes being built, rental vacancy rates could tighten, supporting rent growth
As of 2024
Sources: Marcus & Millichap Research Services, U.S. Census Bureau, National Association of Realtors
Watch Video Below: