Baby boomers, like millennials, are flocking to rentals offering a ‘hands-free’ lifestyle

Source: Ollie

Russ Chung once lived in a sizable Midwest home, but he recently downsized to a luxury one-bedroom rental in Midtown Manhattan just blocks from Central Park.

Now, rather than mowing a lawn, the 60-year-old higher education administrator spends his free time visiting museums and taking in New York’s other cultural offerings.

“As you get older, there are only so many things you want to concentrate on. Apartment life lets you focus on things that matter and get rid of stuff that takes up a lot of time,” said Chung. His building’s concierge signs for his packages, and arranges for housecleaning.

Chung is one example of a subset of baby boomers who have become the fastest-growing group of renters across the nation. Since they tend to have more money to spend than their millennial counterparts, developers are actively figuring out how to lure them to into one of the luxury buildings sprouting up across the city.

Both boomers and millennials are flocking to areas like downtown Brooklyn, where a flurry of new full-services high-rises are springing up — and they sometimes compete over units, Citi Habitats agent Jason Burke told CNBC.

According to Burke, even though there is a glut of these new apartments, there is only a limited number in certain price ranges. Most people want to get in first when the developers are offering the best discounts, he said.

“The boomers are the biggest demographic that can afford it,” he said. “But tech levels everything. We’re seeing a lot of engineers come to New York, a lot of people in tech who don’t work from an office.”

“A lot of millennials are moving into brand-new rentals, and a lot of boomers are saying ‘That’s what’s I like too.'” -Phillip Salem, Triplemint

‘We chill, it’s a community’

Between 2009 and 2015, the number of renters aged 55 or above rose 28 percent, while those aged 34 or younger only increased 3 percent, according to Census data recently crunched by search engine RentCafe.

Meanwhile, more than 5 million baby boomers across the nation are expected to rent their next home by 2020, according to a 2016 analysis from Freddie Mac. Some boomers want to stay close to the neighborhoods they have lived in for decades; others are following their children to cities, experts said.

Like millennials, many boomers want amenity-rich apartments in good neighborhoods.

“You would think they would be buying and investing in property, but a lot of people like the convenience and ease of renting,” said Phillip Salem, an agent at real estate brokerage firm Triplemint.

“A lot of millennials are moving into brand-new rentals, and a lot of boomers are saying ‘That’s what’s I like too,'” he added.

Salem’s own Manhattan high-rise — with a gym, yoga studio and three outdoor lounges — is comprised of about 70 percent millennials and 30 percent baby boomers, the 30-year-old estimated.

“When I’m on the roof deck grilling, there are a lot of baby boomers,” Salem said. “They come and sit with us. We chill. It’s a community.”

Source: Ollie

Chris Bledsoe, co-founder of the national co-living brand Ollie, told CNBC that boomers account for one out of every four email inquiries.

Ollie offers an all-inclusive living experience in micro-unit studio apartments (under 400 square feet), or micro-suites where renters have private bedrooms while sharing kitchens, bathrooms and other common spaces. Roughly 80 percent of tenants in Ollie buildings are in their 20s and 30s, but just under 20 percent are over the age of 50 — and about a third of those are in their 60s, Bledsoe said.

In fact, Ollie renters only need to bring their toothbrushes. The units come with modern multipurpose furniture to make the most of small living spaces. A butler service called Hello Alfred sends home managers to pay weekly visits to water plants and make beds, while each building organizes social events like ski trips, whitewater river rafting and guacamole-making contests.

“I say millennial is a mindset not an age group,” he said. “Boomers are seeking something urban. They want cultural vibrancy, the theater. They want to be close to where their kids and grandkids are.”

Drew Angerer | Getty Images

A sign advertises an apartment for rent along a row of brownstone townhouses on June 24, 2016 in the Brooklyn borough of New York City.

Zach Ehrlich, of New York-based brokerage Mdrn. Residential, recently launched a concierge-like rental service called Stoop that offers short-term leases. It’s attracting interest among boomers looking for a “hands-free lifestyle” and to sample living in new places.

“There are a lot of seniors finding they want to have more flexibility,” Ehrlich said. “They also want to have some sociability, whether they lost a spouse or are separated or just don’t have a family unit.”

Wendy Sanders, a Long Island, New York-based broker with Douglas Elliman, said that downsizing boomers often sacrifice space to live in something that’s brand new.

“They’re looking for maintenance-free living. When the toilet overflows, they want someone to take care of it,” she said.

For Chung, whose job brought him to New York this spring while his wife spends more of her time in their 2,500-square-foot home in Ohio, it is important that he feels well cared for — yet not part of a senior residence, he said.

“As I’m getting older I’m stressed about this: If I fall down and hurt myself here, what do I need to do?” said Chung. “Why am I even worried? I’m going to pick up the phone and call the front desk. I just have to get to the phone.”

 

Apartment dwellers seek affordable rents

http://www.pressofatlanticcity.com/news/apartment-dwellers-seek-affordable-rents/article_84ecea80-7778-5356-9d12-878feec7ac05.html?utm_medium=social&utm_source=email&utm_campaign=user-share

Apartment dwellers seek affordable rents

Atlantic City mother sacrifices to make rent
Press of Atlantic City
ATLANTIC CITY — Toni Wilson, the mother of four children ranging in age from 15 to 3, moved from Egg Harbor Township to Atlantic City to save $100 on her monthly rent.

Working part-time as a cocktail waitress at the Golden Nugget Atlantic City casino, Wilson, 39, was paying $1,300 for a three-bedroom, one-bath ranch-style home that was at least 40 years old and needed repairs. She also had to pay the water bill.

Wilson, who was married previously, moved to the Inlet section of the city to an apartment where she pays $1,200, but gas, electricity and water are included. She has three bedrooms, 2½ bathrooms, a kitchen, a small backyard and a garage.

“They did not want to move at all,” Wilson said of her children. “She (daughter Amirah Elliott, 15) was on the cheerleading team at Egg Harbor Township. They hadn’t lived in Atlantic City for five years. City life is different.”

Wilson is one of many South Jersey residents who live in an apartment with a family and struggle to pay the market rate for rent.

Without financial assistance from her father and her boyfriend, Wilson said, she did not know how she would be able to survive.

“Sometimes, internet is off. Sometimes, cable is off,” said Wilson, who added she learned from her mother that rent and transportation must be paid. “I juggle the rest of the stuff all month.”

 

The need for apartments — due to delayed marriages, an aging population and immigration — is creating more demand at a faster rate than new apartments are being built, so those that do exist are more expensive.

For years, rent growth has outpaced wage growth, and a severe lack of affordable housing affects many parts of the country.

The number of households that spend more than half their income on rent has grown about 25 percent since 2007 and are considered “severely cost-burdened,” according to an analysis by the Joint Center for Housing Studies of Harvard University.

The rental market has exploded, said Robert M. Shamberg, owner of Berkshire Hathaway HomeServices Diversified Realty in Galloway Township.

“The rental market is as hot as the for-sale market was back in 2005-06. There are 100 people looking for every single rental,” Shamberg said.

Landlords are demanding as much as $900 per month for a one-bedroom condo, $1,200 per month or more for two bedrooms, and $1,500 per month or more for a single-family home, depending on the size, Shamberg said.

Shamberg said there have always been people who rented apartments as opposed to buying a house because they didn’t want the responsibility, didn’t understand the value of owning a home or weren’t ready for the responsibility. Others wanted the flexibility of being able to move.

But since the recession, an increasing number of people have been tagged with a bad credit history, don’t have the money to buy or have lost their previous home due to foreclosure and can’t buy, Shamberg said.

Rising rents are an extreme problem, and many people are struggling, said Matt Shapiro, president of the New Jersey Tenants Organization, based in Fort Lee, Bergen County.

“Low and moderate incomes can’t afford today’s rents, which are astronomical and unbelievably high,” said Shapiro, whose organization is the oldest and largest such statewide organization in the country.

 

Rent control is an answer, but it is not the answer, Shapiro said.

Even if a landlord raises the rent 4 percent annually, inflation has been as little as 2 percent, so the landlord will make a profit, Shapiro said.

Good rent-control legislation should allow the landlord or owner to set a profit level that could be maintained.

 

“Instead, in some city markets, landlords are doing extraordinarily well,” Shapiro said. “Mortgage interest costs have been slashed. They (owners) could afford to do rent control and still make good money.”

Rent control is part of the problem in some communities because rent control laws allow landlords to charge whatever they want once a unit is vacated, said Jeff Cronrod, a board member of the American Apartment Owners Association, based in California.

“We have the end of the middle class, which is fairly topical, and that’s really what this is about, and you have the haves and the have-nots. The separation is bigger than ever,” Cronrod said.

One thing landlords in his association are starting to do is adopt what’s called RentGuard, which allows the landlord to eliminate or reduce the money needed for a security deposit, which at least makes the apartment more affordable to move into initially.

In the meantime, Wilson will be doing the best she can, making payment arrangements and providing a little less food sometimes if necessary. She has not experienced a winter in her new place, so she doesn’t know how high her gas bill will be.

“For single mothers and young families to enjoy their children at times, it’s hard,” Wilson said. “They can’t work to save. They can’t work to take a vacation. They work to pay bills and utilities.”

The Biggest Game Changers in Renting Are Older, Highly-Educated Renters, and 2.5 Million Stronger

The Biggest Game Changers in Renting Are Older, Highly-Educated Renters, and 2.5 Million Stronger

Baby boomer renters suburban apartments for rent RentCafe

Have you noticed how different renting is today from one or two decades ago? I think most of us would agree that renters were usually people in their 20s, renting mostly bare-bones dingy apartments with stinky carpeting and peeling windows in poorly-maintained old buildings until they saved enough to buy a place of their own. With some exceptions, this was the profile of the typical renter until recently.

But the newest trends in apartment development are suddenly attracting a new kind of renter. This renter is interested to live in a place that offers a convenient, quality lifestyle, a comfortable living space, a place to exercise, and a place to socialize all-in-one. We were very interested to find out who exactly are these new renters and what motivates them to rent instead of buy.

3 big ways in which the U.S. renter profile has changed

We turned to U.S. Census data to see if it can shed some light on how renting has evolved since 2009 — around the time when the scales started tilting in favor of renting. We looked at changes in the number of renter households by age, education level, and family type.

National stats revealed that, between 2009 and 2015, the biggest changes in the renting population came from seniors aged 55 or over (up by 28%), compared to only a 3% increase in renters 34 or younger. By education, the highest increases were in renters holding a bachelor degree or higher (up by 23%), and by family type, in families with no minor children (up by 21%).

What do these three categories have in common? They all point to one group: empty-nest Baby-Boomers. Whether driven by a change in lifestyle, a consequence of the housing crash, or an inability to find affordable homes to downsize, senior households are embracing renting in droves.

https://e.infogram.com/2974fe7f-d0c9-4629-bc62-bd3ac5d20841?src=embed

Seniors are the new kids on the block in the rental market

Senior renters not only account for the largest percentage increases but also the largest net increases compared to other age groups. About 2.5 million senior households joined the renter cohort nationwide between 2009 and 2015, while the number of renter households aged 35-54 added 1.95 million, and those younger than 34 increased by only 0.5 million in the same time frame.

https://e.infogram.com/4dd6f45d-7ebe-4088-a641-3a032c791f39?src=embed

About 2.5 million senior households joined the renter cohort nationwide between 2009 and 2015 Click To Tweet

American suburbs win over more new renters than cities

  • Older renters — by 39% in the suburbs and by 21% in cities
  • Highly-educated renters — by 26% in the suburbs and by 20% in cities
  • Renting families with no children — by 33% in suburbs and by 16% in cities

https://e.infogram.com/d2cff5a1-65dd-4cb8-bebf-7fca80ac5eef?src=embed

A hefty 39% more renters over 55 years old live in the suburbs compared to 2009 and 21% more in the cities. Comprised mostly of Baby Boomers, this generation has lived a big part of its life in the suburbs, essentially being responsible for the launch and prosperity of the consumer suburb. Owning a home and raising a family in a suburban community truly defined this age group. Now it finds itself in a big empty house, with too much space to keep up and high property taxes to pay.

“Lowering living expenses, looking for a different lifestyle, less house-related work and overall less responsibility can be achieved by downsizing, so a lot of retirees opt to rent.” says Simona Solomie, a real estate broker with Remax Masters of Morton Grove, Illinois, who works with home sellers, buyers, and renters in the western and northwestern suburbs of Chicago.

Baby boomers also account for the highest increase in renters in urban areas, but the spike in numbers is much higher in the suburbs (21% vs 39%). The second highest increase comes from renters aged 35-54, 27% in the suburbs and 8% in the city.

Renter age groups in the top 20 largest metros: Riverside, Tampa, and Phoenix most Baby-Boomer-friendly

In all 20 largest U.S. metros studied, without exception, the rate of increase in senior renters greatly surpasses that of younger renters (see the green bars on the graph below).

Between 2009 and 2015, the senior renter population has grown the fastest in the metro area of Riverside, CA  (by 63%), followed by metro Tampa, FL by (61%) and by metro Phoenix, AZ (by 59%). However, the largest net increases were in Los Angeles metro (which gained 134,000 new senior renter-occupied households and lost 26,000 renter households under 34 years of age). New York City gained an additional 124,000 renter households over 55 during this time period and about 54,000 under 34.

https://e.infogram.com/8bef7f65-c296-49e2-9b26-5d52fdd8fe79?src=embed

Both suburbs and cities see a surge in highly-educated renters

If there was any doubt left that some people actually choose to rent, even though they could afford to buy, the latest surge in the number of highly-educated renters should help erase those doubts. Of all education levels, those holding a bachelor degree or higher account for the largest share of new renters added between 2009 and 2015 in both suburban and urban areas, percentage-wise and in net numbers. The number of renters who hold a bachelor degree or higher increased by 26% in the suburbs and by 20% in the cities.

The second highest increase in renters comes from people with some college education or equivalent (a 19% increase in suburban areas and 12% in urban areas), while those with a high-school diploma or less accounted for the smallest increase.

Phoenix and Denver attract highest-educated renters

The national trend is confirmed at the metro level. In all 20 largest U.S. metros, except St. Louis, MO, the largest gains of new renters were people holding a bachelor degree or higher (green bars on the graph below). In Phoenix metro, renters with a bachelor degree increased by 48%, in Denver metro by 45%, in Tampa, FL metro by 38%, and in Atlanta metro by 37%. At the same time, the number of least-educated renters is decreasing in several metro areas, including Denver, St. Louis, Philadelphia, New York and Boston.

https://e.infogram.com/24e26728-2341-41a0-a5e0-2f492c4453dd?src=embed

More families (with and without children) rent in the suburbs

Looking at family types, renting households with no children saw the biggest jump (up 33% in the suburbs and 16% in the city). This category includes either couples or single householders with no children present in the household. (Baby-Boomer empty-nesters fall into this category.)

The number of renter families with children also grew significantly, by 29% in suburban areas, but only by 8% in urban areas — no surprise there, considering that most families with kids prefer the suburbs.

Suburban DC is most sought-after by renting families with children

In suburban Tampa, FL renting family households with no children increased the most (by 74%), while suburban Washington, DC is the most popular for renting families with children, which increased by 83%. The increases are much lower in urban areas. The most significant increase in the number of renters was in urban Seattle, WA where the number of families with no kids is up by 36%.

https://e.infogram.com/6680fa2c-f3e3-4598-b528-d64a64556b32?src=embed

Renting in the suburbs has gained popularity with all types of renters

Now that the lure of apartment living has spread into the American suburb, renters who want to live in a walkable neighborhood and have a short commute to work can get what they’re looking for thanks to the emergence of the “suburban downtown” and to a concept known as “transit-oriented development.” A great example is Elmhurst 255 in suburban Elmhurst, Illinois, self-described as a “new luxury apartment community in the heart of downtown Elmhurst, within walking distance of grocery stores, the Metra, shopping, theater, museums, restaurants, and nightlife.” For those not from Chicago, the Metra is the train system that connects the suburbs of Chicago to The Loop, Chicago’s business district.

Apartment community in downtown suburban Elmhurst, Illinois – Image via RentCafe

This is exactly the type of suburban new rental community that appeals to both young and old. With such attractive (and often cheaper) housing alternatives right in their community, the decision to switch to renting has gotten much easier for suburban homeowners.

In each of the categories of renters we analyzed suburban areas were gaining renters faster than urban areas. Suburban renting has become so common and so popular, that real estate agents now specialize in leasing, which was certainly not the case 10-15 years ago when hardly anyone used an agent to find an apartment for rent.

“From my experience renting in the suburbs is preferred because – one: renting in the suburbs is less expensive than renting in the city, and two: the suburban lifestyle has changed so much in the past ten, fifteen years for a lot of suburbs, it has become vibrant and full of life with close-by shopping, restaurants, entertainment, fine parks, and transportation.” added Solomie.

Methodology:

  • Tenure of occupied housing units, age groups, education attainment, and household types were obtained from Census ACS 5-year estimates for 2009-2015. 
  • Census Places and Metro Areas obtained from Census Tiger Files. We considered “suburbs” Census Places that are not principal cities. We did not include rural and unincorporated areas. 

40 years later, N.J. courts, towns still wrestling with ‘affordable’ housing

40 years later, N.J. courts, towns still wrestling with ‘affordable’ housing

Delran is one of a number of municipalities still locked in a court battle over its affordable-housing requirements under the “Mount Laurel Doctrine,” intended to ensure adequate housing for low- and moderate-income New Jerseysans. This home is for sale in the Summerhill development, which contains housing for low- to moderate-income families.

A six-lane highway lined with strip malls cuts through a patchwork of tamed lawns and suburban houses in Delran, where population has sprouted rapidly in recent decades.

The township, which has close to 17,000 residents in about 6,000 housing units, is nearly built out with “less than half a dozen properties” available for multiple new housing units, according to Gary Catrambone, the township council president.

Actually, Delran needs to accommodate more than 700 residences for low- and middle-income New Jerseyans, contends the Fair Share Housing Center, which has sued the township, alleging it is undermining its own ability to fulfill affordable-housing requirements stemming from a series of lawsuits that grew out of the availability of such housing in Mount Laurel.

The dispute has been tense in Delran, with one resident complaining at a public meeting, “Next thing you know they’re going to say, ‘Hey … get out of your house, we got a poor person that wants your house.’ ”

It is a variation of a debate that has played out in hundreds of towns across the state over the Mount Laurel requirements, the subject of decades of New Jersey court cases that required communities to accommodate housing that lower- and middle-income households could afford.

“I don’t think anyone would describe affordable-housing policy in the state in the last 10 years as reasonable or rational,” said Mike Cerra, assistant executive director of the New Jersey State League of Municipalities.

After years without enforcement of those requirements — stalling development of new housing — the New Jersey Supreme Court in a sweeping decision in January ruled that towns had to retroactively act on 16 years of accrued housing needs.

But the court’s ruling didn’t define exactly how many homes each community owed, spurring town-by-town negotiations — and in some cases battles — in communities such as Delran, among the more than 150 municipalities that have not yet settled for varying reasons.

Gary Catrambone is the council president of Delran, which is battling in court over affordable-housing requirements.

In a town where the median income is $90,500, the prospect of hundreds of new housing units for lower-income residents generates fears that include new burdens on schools and increased taxes. Some critics are blunt.

“If you’re a lazy SOB and you don’t want to work, you don’t deserve squat, period,” Bob Gilbert, a Delran resident, told the township council at an August meeting. “Rent, or go find a cave to live in, or … some third world country to go into.”

Housing advocates say the fight in Delran demonstrates the need for the precedent-setting rulings that began when New Jersey’s high court declared the township of Mount Laurel‘s zoning practices unconstitutional in 1975.

“There are hundreds of municipalities in New Jersey that if they could have done nothing to help lower-income households, probably would have done nothing,” said Kevin Walsh, executive director of the Fair Share Housing Center, the Cherry Hill-based nonprofit that pushes municipalities to accommodate affordable housing.

The Mount Laurel decisions have spurred development of 80,000 homes for lower- and middle-income residents across the state, Walsh said, “and there’s a lot of homes that are going to be built over the next decade because of these settlements.”

But Delran’s case also illustrates the complications: It says at most it could squeeze 285 such units in available spaces; just last year, it put the number at 44, and Fair Share says it actually owes 704.

For years, suburban communities were allowed to pay other towns to build qualifying residences for them. Delran, for instance, paid $860,000 to neighboring Burlington City, which pledged to shoulder some of its affordable-housing burden by adding 43 low-income rental units there.

“Ultimately, towns want to meet these obligations and move on,” Cerra said.

At the Delran meeting, officials spelled out the township’s income qualifications, which are based on Burlington County’s average income of $83,000 and “are likely a little higher than you might have expected,” Catrambone told residents. A family of four making $66,550 or less would qualify for housing designated for moderate-income residents; a family of four earning $41,600 or less would qualify as low-income.

To rent or buy income-restricted housing, residents must be certified by the state. Prices are also restricted; affordable units currently listed for sale in Delran range from $72,000 to $124,000. The average home cost in Delran is about $240,000.

Municipalities can meet the Mount Laurel obligations by requiring that developments include affordable housing. The costs of building those units — which often constitute 20 percent of the development — are subsidized by the market-rate housing. Other options include redeveloping existing housing stock, or seeking tax credits for a fully affordable development.

Delran officials say the township has a surplus of unoccupied affordable housing and is unable to find buyers for a number of units. “Clearly, we’ve had an issue with getting people into these units,” Jeffrey Hatcher, the township’s business administrator, said in an interview.

Walsh said affordable properties in Delran likely “would be scooped up quickly” if they were for rent, rather than for sale. “I’m not aware of any other towns that have this issue,” he said.

Catrambone said the township has exceeded its obligations under Mount Laurel, meeting the state’s requirements in the 1980s and 1990s. Most of its affordable housing — 150 for-sale units — is interspersed in two developments in town; the township also has several group homes.

“At the last measure, we were ahead of the game,” Catrambone said in an interview last week.

But the affordable-housing rules that set the requirements for Delran and other municipalities expired in 1999. The New Jersey Council on Affordable Housing, tasked with developing new rules, failed to do so, leading to litigation that lasted years as advocates challenged — and courts invalidated — updated versions.

The agency’s failures led the New Jersey Supreme Court in 2015 to transfer the responsibility to trial courts. Then, in January, it ruled that towns continued to accrue housing obligations from 1999 to 2015. The housing plans now being hashed out in courts and through settlements with Fair Share and developers must cover that period, along with the years through 2025.

About 150 towns have settled, according to Fair Share, committing to build 50,000 units. Others are awaiting a ruling in Mercer County, where a trial considered conflicting calculations of municipal housing obligations from Fair Share and the towns.

Delran contends its issue isn’t affordable housing, but that vacant land is lacking, generally. “It’s about housing, in general,” Catrambone said. “How much room do we have left to build?”

While Delran officials say the township is nearly built out, advocates say housing could be built on land including a former country club on the town border. Other development is planned for the 76-acre parcel.

But Fair Share says Delran is trying to skirt its obligations. It has sued to stop developments that received township approvals  that wouldn’t include affordable housing. Among other arguments, the township counters that Fair Share’s action is too late.

“It doesn’t really seem like an accurate statement that they’re concerned about housing, given that they just approved housing,” Walsh said. While Delran had met earlier obligations, in the intervening years, “they’ve done virtually nothing,” Walsh said.

Catrambone said he couldn’t comment on the litigation. He said the township will comply with the court’s decision on how much housing it owes.

“There’s a number. We don’t know what it is, the court doesn’t know what it is, the people suing us don’t know what it is,” he said. “None of it counts until the court says this is the number. At that point, we’ll meet it.”

 

http://www.philly.com/philly/news/40-years-later-n-j-courts-towns-still-wrestling-with-affordable-housing-20171013.html

 

 

Need for New Residential Apartments Skyrocketing Across the U.S.

Need for New Residential Apartments Skyrocketing Across the U.S.

*The Hermitage Apartment Homes St. Petersburg, Florida

On the heels of the great recession, we began to see a trend, as much of the oversupply of condominiums began to be absorbed into the rental market.  In both primary and secondary urban settings, led chiefly by millennials, rental demand was very strong.

Originally seen as a byproduct of the recession – the ability to rent in desirable areas at very reasonable prices – we saw this as the beginnings of a trend.  We felt that there would be an ongoing need for rental apartments that were more ‘choice’ than ‘necessity.’  While the market for renters-by-need was certainly escalating, so were the renters-by-choice. These are individuals who often had the resource to purchase, and simply chose not to, but chose to rent instead.

Fast forward to today, and a new study by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) has revealed that a variety of factors is impacting demand for new apartments across our nation, and that in short, demand for rental apartments will be skyrocketing for the foreseeable future.

Over the past five years, a record-setting number of new renter households have emerged. To meet demand, the report states that at least 325,000 new apartment homes must be built every year in order to meet this demand.

Developers will need to speed up supply, as only 244,000 apartments were delivered over a four year time-frame, 2012-2016.   The full report can be found at the following link on the WeAreApartments.org site.

In two key states in which our company is currently engaged in development projects, the study notes substantial demand.  In Georgia, as illustrated in the following metrics, apartment household growth is expected to grow more than 30% by 2030, and growth in rentership almost 31% over the same time period.

In Florida, those numbers are even more compelling, with apartment household growth being expected to grow more than 40% by 2030, and growth in rentership more than 41%.

*METRICS FOR APARTMENT DEMAND IN GEORGIA

*METRICS FOR APARTMENT DEMAND IN FLORIDA

*Source: Hoyt Advisory Services; NMHC/NAA; U.S. Census Bureau.; Axiometrics, a RealPage Company

The approach of The Allen Morris Company to this new phenomenon was to focus on delivering apartment projects that offer all the amenities of home ownership, but in a rental scenario. There was a point where those wishing to rent were relegated as housing’s ‘second-class citizens,’ having to settle for apartments that – even though brand new – did not offer many of the amenities or desirable locations of a purchase.

That is rapidly changing! An example for us is the just-opening Hermitage Apartments in St. Petersburg, FL.  The amenities within the facility are amazing, as good as any luxury condo. We even have an art gallery connected with a renowned museum in the lobby.

At our Maitland City Centre mixed-use development in Maitland, Florida, just north of Orlando and well under construction, we will have 220 one- and two-bedroom rental apartments along with 24 live/work units.

Part of an evolving downtown, these apartments will allow both the ‘new’ generation of renters, as well as empty-nesters desirous of living in an urban setting to enjoy easy access to the arts, entertainment and shopping.

At our Star Metals Atlanta development, to be located in the trendy West Midtown neighborhood of Atlanta, this mixed-use community will also include a multi-family residential component to complement an office building directly across the street and retail.

All three of these developments exemplify the new-normal of residential real estate – apartments that offer a broad range of amenities, within extremely desirable neighborhoods.

While the report’s focus was the strong demand through the year 2030, we certainly do not anticipate a ‘hard-stop’ that year.  We believe that we are in a new paradigm in the world of rental apartments, one that will be in existence well beyond 2030.

So to that end, the Allen Morris Company is currently evaluating a number of opportunities across key Sunbelt states that would certainly meet the ever-increasing demands of this new generation of renters.