As increasing numbers of millennials form new households and older households switch from owning to renting, the long-term outlook for rental housing demand remains positive, according to the recently released 2018 Apartment Statistical Analysis report from RubinBrown.
Demand for housing is driven primarily by an increase in household growth, which is expected to remain strong based on aging millennials and the overall population. According to the Joint Center for Housing Studies of Harvard University, with a large portion of the millennial population now in its early 30s, adults under age 35 formed 10.5 million new households in 2012 – 2017, which is 1.5 million more than in the previous five-year period. The millennial generation will continue to lift household growth for years to come.
While the number of young adults impacting the housing demand will continue to grow, the older population is growing faster. According to projections by the Census Bureau, the total U.S. population age 65 and older will reach 79 million in 2035. This represents an increase of 31 million over the same statistic in 2015.
The largest increase in the housing demand of older adults is expected to come from single-person households. A 2014 survey conducted by AARP indicated 88% of adults 65 and over want to remain in their homes as they age. The decision of older households to age in place will require additional accessible housing with supportive services.
Each year, data is collected from RubinBrown clients, as well as other contacts and referrals within the industry, to comprise averages in a variety of markets within the United States. RubinBrown’s 2018 Apartment Stats includes operational data for 2017 and represents approximately 750 apartment projects in roughly 40 states. While these averages are representative of a smaller pool of projects, the trends are usually consistent with those experienced at the national level.
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