TAMPA, FL—A new renter majority is taking shape across the U.S., and it is forcing multifamily owners to rethink everything from site selection to amenity packages as shifting demographics and rising expectations redefine the business.
At the GlobeSt. Multifamily Owners Summit, industry executives said today's renter base looks fundamentally different than in past cycles, with students, essential workers, retirees and former homeowners all playing a larger role in demand. During a fireside chat moderated by John Sebree, senior managing director and head of real estate investment sales at Lument, panelists described how those changes are driving investment decisions and operational strategy across multifamily and student housing.
For Susan Folckemer, chief investment officer at The Preiss Company, the shift is especially visible in student housing, where a new generation of renters is pushing the sector to evolve.
"Student housing has become much more sophisticated," Folckemer said, noting that the sector has evolved into a fully institutional asset class.
That transformation has been fueled by an influx of institutional capital, including pension funds, family offices and sovereign wealth funds, which has elevated both the quality of assets and the expectations of residents. Developments are now more likely to be located adjacent to or within walking distance of campuses, reflecting demand for convenience and experience over the older model of more distant, lower-amenity properties.
At the same time, student behavior is shifting, reshaping leasing and pricing strategies. Folckemer said students are signing leases earlier, paying higher rents and expecting more from their living environments.
"The expectation from students has changed," she said. "They're looking for quality accommodations and a stronger overall living experience."
Beyond student housing, panelists said the broader renter base is becoming older, more diverse and more intentional in its housing choices. Joe Lubeck, CEO of American Landmark, said demographic changes are influencing both where his firm invests and how it designs its communities.
"We're always looking at where the next hospital is and which hospitals are expanding," he said, describing how healthcare-related job growth has become a key signal for future demand.
Within American Landmark's portfolio, the renter profile has shifted over time, with more residents staying longer and placing greater emphasis on shared lifestyle amenities. While outdoor space remains important, Lubeck said renters are increasingly prioritizing features like dog parks, playgrounds and communal areas over private yards.
Just as significant is the rise of renters by choice. A growing share of residents are former homeowners who have sold their homes and opted for the flexibility of renting, a trend Lubeck said now accounts for roughly 10% to 12% of the company's portfolio.
"They don't want a condo, they don't want association dues, and they like having a fixed monthly payment," he said. "I think that's going to continue to grow."
That shift is contributing to longer retention across multifamily properties, according to Skip Schwartz, chief investment officer at Grubb Properties, particularly as affordability challenges keep many would-be buyers on the sidelines.
"The cost of homeownership is so high that we're seeing retention in rentals," he said.
Grubb Properties focuses on essential workers, a segment Schwartz said underscores how the renter majority is evolving. For many in this group, renting is no longer a temporary step but a long-term reality shaped by both economic constraints and changing preferences.
"Our target resident is the essential worker," Schwartz said. "We're seeing many of them stay in place—not just because of employment opportunities, but because they're either not interested in buying a home or are unable to do so."
Taken together, panelists said these shifts point to a structural change in who rents and why. As the renter majority expands and diversifies, success in multifamily is increasingly tied to how well owners understand and respond to those evolving needs.
Check back with GlobeSt.com for more from the GlobeSt. Multifamily Summit event.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.