How Gen Z Renters Might Reshape Multifamily

Gen Z is surpassing millennials as the largest renter cohort dominating the multifamily market, which has comprised 42% of all CRE sales since the start of the pandemic, according to a new Cushman & Wakefield and Greystone report. 

The sector has been favored by strong supply-demand fundamentals, as US household formation hit 1.3 million in 2021 and is projected to hit a peak of 1.5 million in 2023. The report analysts note that the rental sector could absorb a “higher than usual share” of that new demand due to low inventory and home affordability challenges. Low vacancy and solid rent growth are predicted in the near term, especially in the Sun Belt.