Recent data shows that there are over 90 million millennials currently living in the US and that number is only going to increase. Property developers are quickly recognizing that this growing demographic is changing the real estate market in their favor. With busier lifestyles and the desire for urban living, millennials are often renters by choice. Here are four trends that are attracting millennials in vast numbers and taking the multifamily industry by storm.
1. Urban Life
For millennials, it is all about location and walkability. They want to remain in a bubble of convenience while living close to restaurants, grocery stores, and like-minded individuals. Many of these young professionals enjoy walking or biking to work so they prefer to remain in the hustle and bustle of the city. Developers are accommodating millennials by making increasingly taller, skyscraper-like buildings with modern features and architectural appeal. They are also supplying space for bike parking and even bike rentals.
2. Micro Properties
With location being one of the driving forces for new residents, builders are trying to provide cost-effective units to house more residents while keeping operating costs low. City-living can be expensive and competitive. Smaller, more efficiently designed units are becoming a popular solution. Similar to the concept of “tiny houses,” these micro properties try to put every inch of space to use by employing multi-functional spaces. Millennials do not spend as much time at home as other renters so this cost-effective solution is becoming increasingly more popular.
3. Larger Community Spaces
The multifamily industry is delivering more amenities than ever and looking at the hotel industry for inspiration. Community spaces are now providing larger fitness areas that offer classes like yoga and aerobics. For residents who work from home, some buildings are providing closed off office spaces with wifi, USB-ports, and even cafes. Outdoor spaces are also being enhanced with televisions, sound systems, outdoor-kitchens and comfortable seating. Dog parks and even pet “spas” are becoming trendy. These spaces bring residents together by fostering areas of socialization and recreation which helps create a feeling of community.
4. Embracing Technology
Millennials are not afraid of using technology to their advantage. Package lockers are becoming popular as more residents are shopping online than ever. To accommodate the demand, these lockers will hold packages and even text or email residents upon their arrival. They will receive a unique code that enables them to access the locker. Buildings are being designed for optimal efficiency and sustainability. Builders and property developers are using technology, environmentally-friendly materials and principles to create eco-friendly buildings that attract millennials. Smart thermostats and energy star appliances help lower costs for residents and property managers alike. Electric-car ports will soon be commonplace as well. Certain properties are even offering green incentives to their residents by providing water-bottle filling stations and on-property composting/recycling stations.
Millennials are quickly becoming the largest demographic in the real estate sector. For more trends and tips on how to attract more millennials to your property, contact us at Marquette Management, the best place to work, live and invest!Back to all posts