{"id":4007,"date":"2015-11-30T15:08:31","date_gmt":"2015-11-30T23:08:31","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=4007"},"modified":"2016-12-27T13:58:38","modified_gmt":"2016-12-27T21:58:38","slug":"the-millennial-effect-on-rental-housing","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/the-millennial-effect-on-rental-housing\/","title":{"rendered":"The Millennial Effect on Rental Housing"},"content":{"rendered":"

\"Millennial<\/a>A new report\u00a0from student housing experts\u00a0ABODO<\/a>, reveals the preferences and spending power for student renters and the millennial generation. \u00a0<\/span><\/p>\n

Millennials are the largest source of new demand for rental housing, making their housing needs an important consideration for property managers and rental property owners. With 78.6 million young Americans aged 19-36 making up<\/span> the millennial cohort<\/span><\/a>, they outnumber the Baby Boomers and have become the nation\u2019s most relevant\u00a0generation. <\/span><\/p>\n

An April 2015 report from the Urban Land Institute notes that <\/span>millennials constitute 26.3 million American households<\/span><\/a>,\u00a0a number that is predicted to to rise as more young people achieve independence and gradually move into their own homes.<\/span><\/p>\n

More recently, <\/span>ABODO released a report in November 2015 that looks at the buying power of the millennial generation<\/span><\/a> as it relates to student rental housing. \u00a0ABODO conducted research on student housing pricing and amenities from 355 U.S. universities\/campuses, which included over 1 million properties. ABODO\u2019s 2015 survey results and data analysis provides insight on the services, amenities, and costs of today\u2019s off-campus rental housing choices. \u00a0\u00a0<\/span><\/p>\n

Millennials and Student Rental Housing<\/b><\/p>\n

Student housing managers and owners can look at key behaviors of the Millennial generation, who are prime targets for student housing property marketing. \u00a0According ABODO, Millennials, aged 18-34, are considered to be collaborative, open-minded, highly educated and highly tech-focused.<\/p>\n

ABODO cites data from Axiometrics Inc. that high demand for housing in university towns has given way to a 95.8 percent national occupancy rate in off-campus properties for 2015, compared to only 94 percent in 2014.<\/p>\n

ABODO refers to the mid-1990s as the historical shift in student housing as off-campus property owners and developers started making a more concentrated effort to design and build properties that would appeal to student renters. \u00a0Recognizing that student renters are driven by different wants and needs of other types of renters, in the past 10-15 years off-campus student housing has become a hybrid of traditional apartments and on-campus dorms. \u00a0<\/span><\/p>\n

ABODO\u2019s research mirrors that cited in <\/span>an article from GlobeSt.com<\/span><\/a> which notes that student housing developments began as an offset of multifamily construction in the 1990s when buildings were cookie-cutter, simple, and cost effective. \u00a0As demand for of-campus housing grew, student housing owners and managers shifted focus towards providing high-end features and upgraded amenities to attract young renters and stand out against\u00a0the competition. \u00a0\u00a0<\/span><\/p>\n

Today, student housing promotes a social environment in an effort to mirror college lifestyles, with an emphasis on common areas like TV rooms, study rooms, fitness centers, pools, and outdoor BBQs and firepits.<\/p>\n

Proximity to campus is another priority to 64% of student respondents in an April 2015 online ABODO pool, who prefer to live in an apartment that is less than a 15-minute walk to campus.<\/p>\n

When asked to rate the top 5 amenities considered most important in their student housing search, ABODO\u2019s student survey revealed:<\/p>\n