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longer than those of the same age in past generations. Rather than
retiring to quiet rural locations, a growing number of empty nesters
are seeking urban locations where they can enjoy theater, restaurants,
sporting events and more.
Location is another aspect. Some Boomers are maintaining
primary or secondary apartments within proximity to their families
instead of permanently moving to locales such as Florida and
Arizona. That would help explain some of the demand for high-
priced luxury apartments that are proliferating in urban locations
but seem to be priced out of reach of the Millennial generation.
Conclusion
Forecasting demand for commercial properties is an inexact
science, and is subject to broad shifts in the economy and social
trends that are notoriously difficult to predict. That said, except in
dire economic circumstances, demand for rental properties will
almost certainly continue to be robust in the next decade and
beyond. The growing population and demographics of the increase
in residents will produce a steady increase in demand for units and
current social trends indicate that a growing share of the demand
will be for multifamily units. In particular, growth in the size of the
Boomer generation, combined with economic and social forces,
is likely to produce growing demand for rental properties among
households headed by individuals ages 55 and up in coming years.
While we are bullish on the concept of increased multifamily demand,
development should be targeted, since demand will increasingly
involve housing that caters to the needs and aspirations of specific
consumer groups. Developers must be careful to build the type
of product that matches demand. What’s more, demand won’t be
consistent across the country but will be concentrated in pockets
where job growth is strongest and Millennial and senior households
want to live.
Led by Boomers, Multifamily Demand to Remain Robust
ATLANTA • NEW YORK • DALLAS • IRVINE LONDON • AMSTERDAM Trimont Real Estate Advisors is proud to be a Platinum Sponsor of CREFC’s 2016 Industry Leaders Conference in Miami. Things are a little different this year, though: FirstCity Financial Corporation is now part of Trimont. With more than $100 billion in assets now under management and a new Dallas location, we can offer lenders and investors a wider variety of real estate financial services than ever before. We’re the same company you know and trust, but we’re better positioned than ever to serve you. FIRSTCITY – NOWA PART OF TRIMONT. FIRST-RATE SERVICE – ALWAYS PART OF TRIMONT.“The size of the Boomer generation, combined
with economic and social forces, is likely to
produce growing interest in rental properties
among households headed by individuals age
55 and up in coming years.”
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