Many apartment developers that I work with are looking at the Baby Boomer demographic as the new preferred tenant. Many are building projects that include studio units as well as units that are centrally located to downtown living, which is ideal for both Baby Boomers and millennials. As Baby Boomers age, they want to be closer to theatre, art, and nightlife—and they want the ability to travel. Many want to put aside the necessity of keeping up a house; they see renting as the ideal way to live. The following article looks at this closely:
As a multifamily buy and hold investor, for years now I have heard endless talk of how Millennials are the renter demographic. They don’t want or can’t afford to buy their home, and we as rental owners should be targeting this demographic and appealing to their preferences.
In 2016 Freddie Mac conducted their first 55-plus survey, and it revealed that of those 55 and over who plan to move again, 71 percent plan to rent—and more than half of those people believe it makes the most financial sense to rent. Some of the factors these potential renters are looking for is affordability, amenities, and a walkable community. Furthermore, those surveyed said they would like to stay close to where they are currently living. Here’s what Jered Sturm says:
There is and will continue to be a staggering amount of Baby Boomers entering in the renter market, and if you can meet their needs, demand will be so great that the probability for investment success will increase significantly. I believe those needs are catering to the senior lifestyle, while also remaining highly affordable, in areas that Baby Boomers already live.
The number of Baby Boomers is staggering—close to 80 million people. Clearly this is a population to consider as you plan your property investment and marketing efforts. The key is to balance the potential the Baby Boomer market offers while also keeping in mind younger renters and ongoing viability.
If you would like to know more about demographic trends and what is happening in the Eugene multifamily market, give me a call today: 541-912-6583.