In order to appeal to a thriving real estate market today, real estate developers and property managers alike need to understand pivotal changes in market trends. In an effort to increase their ROI, property owners must understand the needs of the real estate market’s new and largest cohort of renters — Millennials. Also known as Generation Y, the term Millennials refers to individuals born between 1977 and 1995. Recent statistics show that millennials make up 27% of the U.S. population and 25% of the U.S. workforce. As millennials enter their prime spending years, they will likely have a huge impact on the real-estate market.
Why The Upturn In Millennial Rentals
The reason for this surge in millennial renters results from societal and government factors ergo, a stagnant job market and accumulated student loan debt. These financial shortcomings have Millennials on a downward turn to purchasing homes. Research proves this age bracket of individuals will likely rent for an extensive period of time than previous generations. However, their wants and needs to live comfortably in one development versus another are factors that developers and property managers can capitalize on to build the most appealing units and flourish expansion opportunities.
Areas Millennials Want To Live
Many expect millennials to be more career driven than ever before, and will likely prolong procreation in an effort to establish their career before beginning a family. This mindset shifts the concern from an emphasis on a quality school district and suburbia to areas that offer proximity to work, recreation and a bustling downtown area.
Real estate agents and brokers can use surrounding businesses and points of interest to entice renters more so than highlighting neighborhoods and community culture like for previous generations. Furthermore, the element of accessible transportation can be a determining factor in securing a sale. New development buildings often provide shuttle services to commuter trains, position buildings nearby, or adding bus stops in an effort to accommodate commuters.
Lifting Unit Renter Restrictions
In order to attract millennials, property owners must understand societal shifts, which matter to this generation. A great number of millennials own a pet, as approximately 70% of renters report difficulty in finding pet-friendly units. Thus, property owners should consider and accommodate animals to boost appeal to millennials. Furthermore, property owners can increase popularity by offering pet-friendly amenities such as dog runs or pick up stations. Property owners can also opt to negotiate the weight requirement, as apartments previously did not allow dogs over 50 pounds, as well as certain breed restrictions.
When searching for a place to live, Millennials opt for residences that are less focused on square footage and room size. Instead, they would rather rent units offering amenities that facilitate socialization. Millennials desire ways to foster their digital entertainment hobbies such as common areas and outdoor spaces to unwind and check social media. In addition, other important amenities renters look for include recreation rooms with state of the art equipment, billiards rooms, theaters, bike paths, and swimming pools.
To provide an ideal atmosphere fit for a career oriented millennial, property owners must realize that many individuals now work remotely. Thus, real estate developers should strategize to include work-from-home perks into their building plans. For example, property owners can offer coffee shops, quick WIFI connectivity, and cellular service in every unit and common area of the building.
The term smart-home now lends itself into apartment units. No longer exclusive to luxury households, an increasing number of property owners now incorporate smart-home features into their building design. Renters can benefit from scheduling the controls for heat and air conditioning, lighting and alarm systems all from their smart phone.
Support Millennials, Go Green
Millennials care about the environment and offer support to others taking part in the movement to go green. Therefore, buildings that care for the way individuals dispose of their waste such as recycling and composting will bring a sense of community to the building. Therefore, property owners will want to look into incorporating solar energy, building with eco-friendly materials, and installing energy-efficient kitchen and laundry appliances in each unit.
Bringing It All Together
While some of these tips may not initially seem cost-effective, adopting these elements will help convince millennial renters that your community is hip, stylish, and sophisticated. For more information about apartment property loans, contact the experts at Hunt Mortgage Group today!