By many standards, rental has become the new American Dream, as our nation’s 35 Million apartment residents can attest. Even as the economy continues to recover, home ownership is becoming more difficult for younger generations. Weak job market conditions, mixed with rising housing costs, have driven millennials and other generations to seek out apartment living as their primary housing option. This is also creating an unprecedented growth rate for multi-family living. Here are some of the factors that are driving people to rent now and ask questions later.
Let’s face it, the economy has been a burden on us all. Unemployment still hovers at dangerous levels, while costs of living continue to rise. Just five years ago, banks went tumbling as the housing bubble gave way and foreclosures skyrocketed. Now, even though money is available once again, loans are harder than ever to come by due to stringent qualifying standards. First time homeowners are having trouble getting a first mortgage and many people who had mortgages before are afraid to go back to homeownership. Renting is the best alternative. Even with rising rental rates, the affordability of rental still far exceeds the burdens of mortgage constraints.
Family Status Changes
When your family grows, so does your need for space. Renters have the flexibility to change their space needs to keep up with these changes. Whether it is co-habitation, marriage, or new dependents, there is an apartment out there to fulfill the need for more space. The same can be said of divorce. As a new chapter in one’s life begins, the ability to downsize and start over again is imperative. Apartments allow for the ever-changing family to always have an affordable housing solution.
If you are going to live somewhere temporarily, a house is probably not your best solution. Students going off to college need dorms and off-campus housing. Relocating business professionals are often only in cities for a short amount of time for temporary assignments, or they have not decided where to put down roots. Even seasonally, people move to different areas of the country to enjoy or escape the snowy escapades. The apartment lifestyle allows you to be able to adapt and succeed in any new city for as long or as short a period of time is needed.
The number one reason that a third of all renters choose apartments is that they want to live the apartment lifestyle. Homeownership comes with a lot of headache, including upkeep, maintenance, and noisy neighbors. All of these challenges are taken away when you dwell in apartments. Also, many of the amenities available to apartment residents are not available to those living in houses. Furthermore – in our time-crunched society – the option to live, work, and play all in one community has become a necessity. 65% of all apartment dwellers live within 30 minutes of their work. Apartments also allow you to live where your friends are and reside close to the activities and ventures that you love.
Apartments are the best lifestyle for many. Almost everyone lives in at least one during their lifetime, and many people will have more than one. That is one of the best things about them. There is an apartment out there suited for anyone. It is just a matter of finding the right one to fit your needs.
This post was written by Pete Regules. Follow him on G+ for more insight on the state of the apartment industry.