Allen Morris Residential has decided to build a community that attracts both Millennials and Baby Boomers:
When W. Allen Morris was planning a new apartment community, he knew he wanted to cast a wide net to appeal to both Baby Boomer and Millennial renters.
So, he took a look at his own family and decided to build a place where they would all feel welcome. The 62-year old Morris surveyed his six children, who range in age from 23 to 32, to find common ground between his Baby Boomer values and their Millennial and Gen Y expectations…
“The idea is not to target a specific age group but to design it for people that like art and fitness and other common interests,” he says. “It should attract a broad range of people.”
Morris’ Coral Gables, Fla.-based company, Allen Morris Residential, will develop the apartment building on two acres of undeveloped land, an entire city block in St. Petersburg.
There have been several large demographic trends that have positively affected the apartment industry over the last few years – a tight home lending market, more folks avoiding the anchor effect of mortgages so they can pursue job opportunities in other cities if necessary, the reluctance of young folks to commit to long term debt – but the wave of baby boomers who are downsizing might be one of the most significant trends in coming years. From an article at Property Management Insider:
In a report issued by the Federal Reserve Bank of Kansas City by economist Jordan Rappaport, “the longer term outlook is especially positive for multifamily construction, reflecting the aging of the baby boomers and an associated shift in demand from single-family to multifamily housing.”
He says that movement from single-family to multifamily housing could create a geographic shift from suburban living to city living, and that suburbs may need to consider rezoning alternatives to encourage multifamily reconstruction.
In a study last year, NMHC projected an increase in the number of older apartment renters. While most renters won’t fall into the Boomer category, those 65 and older will account for almost 60 percent of the increase in apartment renters by 2023. In the past 10 years, just more than half the increase came in the 45-54 and 55-64 age groups, the report says.
The younger demographic will continue to fuel demand for apartments, but don’t forget the Baby Boomers.
You really should read the whole article and see what else this trend might mean, particularly as it concerns amenities and apartment unit configurations.