11 Oct Rentals on the Rise

Home sales may still be struggling, but the rental industry is booming. Aside from the housing market woes, more and more Americans are downsizing. It’s no surprise that rentals are on the rise.

Gen Y is not as interested in garden-style apartments. So will high rises gain popularity? Or will they be looking for a new product not yet designed?

We know they will expect wi-fi, iPod docking stations and apartments that truly reflect who they are.

The high foreclosure rate is not the only factor in the accelerated transition toward leasing. Today’s housing demand has actually shifted toward smaller dwellings; with Boomers downsizing to urban centers offering more amenities and the Millennials just hitting their single, urban life stage. Generation X is one of the smaller demographic groups right now, translating to a much weaker demand for traditional neighborhoods with single-family homes.

As the economy is now starting to lift, those who took on roommates or moved back with their parents are just starting to emerge into the real world again. Often the majority of these groups start with a lease.

Apartment developers are already responding to the growing demand for rental housing, but with so many construction firms out of business or in slow recovery there may soon be a rental shortage in many metropolitan areas.