Millennials Are Leading the Declining Homeownership Trend. What Does That Mean For Apartments?

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Volhawk Team

More U.S. households currently are renters than at any point since 1965. For a third of them it’s by choice, not circumstances.

The attractions of renting for all age groups:

  • Affordability

  • Freedom to choose where and how to live

  • The convenience of working and playing in the same area

  • Amenities such as fitness centers, game rooms, community rooms, and quiet workstations




The New York Fed reports that the share of respondents to its 2022 Housing Survey saying housing is a “bad” or “somewhat bad” investment rose 52% in one year.



Millennials are leading the rental trend.

  • Renting makes access to trendy, desirable areas of town more affordable.

  • Millennials prefer flexibility and value a rewarding, meaningful career over a stable, consistent one, and renting allows them to pursue these ambitions more easily.

  • They are more mobile than other generations. It is easier to end a lease than to sell a home fast.

  • For hard-working Millennials who covet their free time and have funds left over to enjoy it, passing yardwork, repairs, and maintenance to a landlord is a big plus.


More empty nesters do not want to care for a home.

  • Like Millennials, they want to avoid the hidden the costs of ownership and enjoy life, not work hard for their house.






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References:

  • “More U.S. households are renting than at any point in 50 years” by Anthony Cilluffo, A.W. Geiger, and Richard Fry for Pew Research Center, 7/19/17.

  • “The top five reasons more people are choosing to rent rather than buy a home” by Robert Pinnegar for The Washington Post, 1/27/20.

  • “Home Price Expectations Diverge in the Short- and Medium-Term; Sharp Increases in Rent Expected Over the Next Year,” Federal Reserve Bank of New York press release, 4/18/22.

  • Findings from Federal Reserve Bank of New York’s Center for Microeconomic Data, 2022 Housing Survey, part of its Survey of Consumer Expectations (fielded in February 2022)

  • “Why Millennials are Renting More — And Why It Works for Them” by Marisa Sanfilippo for mymove.com, 3/11/22.

  • “More Millennials are Renting. This is Why.” by Ben Mizes for Rent.com, 5/14/15.

  • “Millennials aren't buying homes, and it might not be because they can't afford them: Some actually prefer to rent instead” by Hillary Hoffower for Business Insider, 7/29/19.

  • “More Millennials Are Renting Because They Have To” by Michael Kolomatsky for The New York Times, 12/30/21, citing a recent RentCafe survey.