Dive Brief:
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A growing number of tenants who rent apartments instead of buying homes are not only staying out of the home-buying market by choice, but also span a wide demographic range, according to data from the National Association of Realtors.
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Writing in NAR’s MHN Online, Eugene R. Diaz of real estate owner/operator Prism Capital Partners, said while a large number of the 5 million to 6 million new-renter households that form over the next decade will involve young adults, “renters of choice” of all ages are choosing apartment life over homeownership.
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“The demand for rental living goes beyond simple economics,” wrote Diaz, who conceded that many Americans who can’t qualify for mortgages in a tight credit market settle for apartment homes. “Lifestyle preferences are among the factors driving the surge in apartment living.”
Dive Insight:
Diaz said the apartment population includes retirees who want to downsize; young professionals who want to be free to move in a hurry if a good job becomes available elsewhere; and cash-strapped, debt-riddled recent college grads. “There is not one ‘typical’ tenant,” he said.
