Which Generation Is Really Driving the MF Market?

LOS ANGELES—Is the multifamily industry ready for the wave of demand that’s set to hit the market? In looking at the demographic trends that are most impacting the industry, there are two forces at play. There are Millennials, or Echo Boomers, who will be entering the market in droves. There are also the Baby Boomers, who have much more disposable income than their younger counterparts and are expected to sell their homes and downsize. Experts at RealShare Apartments yesterday at the Westin in Downtown L.A. took a closer look and weighed in on the two groups.

According to Greg Willett, VP of MPF Research, there are currently two types of Millennials. Mainstream Millennials, he said, comprise 39% of the market-rate apartment renter base. Their average income is $49,568 per household. “There are lots of these households in every type of neighborhood where small units are the dominant choices and the propensity to renew upon lease expiration is the lowest across any renter segment.”