Millennials: An Emerging Housing Market
Millennials are not only more numerous but also more diverse than previous generations. A U.S. Census Bureau report says, 44.2 percent are “part of a minority race or ethnic group (that is, a group other than non-Hispanic, single-race white).” Diversity may add challenges to figuring out what appeals to Millennials in housing, but Lloyd Jones Capital is wooing them into apartments Realtor magazine has just weighed in on working with this biggest generation. i'll highlight a few of their findings below:
Opportunity to Leave the Nest
Regardless of race or ethnic group, Miami-based Lloyd Jones Capital Multifamily Investment has done the math. It says 30 percent of Millennials still live with their parents and sees opportunity to help 25 million Millennials move out of mom and dad’s home and into an apartment. To facilitate Millennials moving, the company is acquiring and “rebranding apartments.”
Often, rebranding means, is choosing a well-located project for purchase, focusing on Millennials rather than other target markets and making sure amenities are up to snuff, including, tech, exercise facilities and fun. In Florida, that means water amenities, too. Lloyd Jones investor-funded apartment complexes are primarily in Texas and Florida. Property Websites, see a link to an example below, include everything a prospective renter needs to know: floor plans, amenities and rent. Below is The Granite at Porpoise Bay in Daytona Beach, Fla.
Diverse and Growing
In keeping up with Millennials, it is important to keep in mind that the other big generation, Boomer, was increased by immigration. Today’s 75.4 million Boomers includes Boomers born outside the U.S. who immigrated into the county. Overall, the Boomer population is shrinking. The only data I could find to break out those born in the U.S. versus the added immigrant Boomers was from 2012. Why does this matter? Demographers know that there were 76 million babies born in the U.S. from 1946 to 1964; only 65.2 million of those birthers were still alive in 2012, five years ago, which means that 14 percent of Boomers born in the U.S. were already dead five years ago.
Immigrant boomers have kept Boomer population hovering around 76 million. And that begs a question. Will immigration swell the Millennial numbers by 14 percent? If so, in coming years there could be close to 95 million Millennials. This is especially relevant given that Millennials are already the most diverse generation even without adding new immigrants. As diversity increases, when do demographers recalibrate who is in the minority? Even the Census Bureau has started to use the phrase “minority majority” to describe certain markets.