Gen Y is making a major impact on the housing market and more than many may realize. According to Freddie Mac’s latest U.S. Economic and Housing Market Outlook issued on September 15th, Apartment vacancy rates have dropped to its lowest level since 2000. Sources report that 15% of Millennials live with their parents and 34% have a 4 year college degree.
Capital will continue to pour into investment properties outside of a significant credit or international crisis. Per a recent Costar article, 'Going forward, Millennials will continue to play a critical role in shaping housing demand over the next five years, according a new report by The Demand Institute. They are projected to spend $1.6 trillion on home purchases and $600 billion on rent, more on a per-person basis than any other generation in the next five years. Millennials will account for one in every four dollars spent on housing over this period.'
Say what you want about Gen Y, but know that if you own a multifamily property, chances are you currently or will be building equity and generating cash flow from this generation. The question to ask yourself is how you are positioned maximize both- today?
Contact one of HFO's brokers or investment specialists to see how we can help you with your strategy.
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