Young people are interested in a different kind of lifestyle than earlier generations, thus
Americans are experiencing an urban renaissance of unanticipated proportions. Realizing that now is the time for experience, college graduates are moving to cities. Now, multifamily properties account for 40% of all new construction. It’s time for you to get in the game.
Recently released census data shows that in 2014 metropolitan areas across the country grew at a faster rate than the rest of the country, with cities like Austin, Texas and Seattle, Washington growing quickly.
In Los Angeles, according to Loopnet, multifamily property sales prices have risen +1.6% in the first quarter to a median price of $177,256.80 per unit. This is a +15.8% rise from 1Q 2013.
“There’s been a surge in urban apartment building,” says chief economist for the National Association of Homebuilders, David Crowe. “The 25- to 34-year-old age group is focused on living near their peers. They want be socially engaged and live near work. They want to reduce their automobile use. All of those things aim at high-density, urban-type living.”
Those aged 18 to 27 have a median income of $24,973; meanwhile, older Millennials (28 to 36) make closer to $48,000.
- Currently, 36% of Millennials rely on parents for financial support.
- Millennials are the most racially/ethnically diverse generation: 19% are Hispanic, 14% are African American, and 5% are Asian.
- 62% of Millennials prefer to live in mixed-use communities.
- Green is still in. A whopping 60% of Millennials are willing to pay more for a product if they think it’s good for the environment.
And more curiously…
- This generation makes up about 14.7% of Americans with assets of more than $2 million.
- 8% of Millennials own their own business.
- Washington D.C. is home to some of the most wealthy Millennials (those earning more than $100,000 per year), followed by San Francisco.
- Only 21% of Millennials are married.
“Unlike their parents, who calculated their worth in terms of square feet…this generation is more interested in the amenities of the city itself: great public spaces, walkability, diverse people and activities with which they can participate,” observes Ellen Dunham-Jones, a professor of architecture and urban design at Georgia Tech.
With student-loan debt hampering their opportunities for homeownership, this demographic will continue to hold sway on the apartment industry for years to come. There are currently more than 77 million Millennials across the nation, a number just about on par with Baby Boomers.
For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – or 310.392.1211, and let us move forward together.