BYTHE NUMBERS
JOHN BURNS CONSULTING
ship in excess of 80 percent, and our analysis of trends leads us to believe that a small percentage of them will convert from owning to renting in their empty-nest years. According to the U.S. Census Bu- reau, 8 million U.S. households headed by those aged 55 to 74 are renters, and we left the conference believing those numbers will trend higher. Here are some of the key points we took away from the conference and discussions with our clients: • In many metros, older renters have been driving demand. • These renters rent by choice. They prefer an urban or suburban mixed-use location that provides convenient access to retail, dining and cultural amenities. • Mature renters prefer smaller, more intimate developments (around 180 to 220 units) over large apartment complexes. • Although 55 percent of newly developed apartments are studios and one-bedroom units, there is significant demand for larger three-bedroom units, often appeal- ing to Boomers. A number of our developer clients wish they had planned a larger mix of units with three or more bedrooms in their developments. • Contrary to history, three-bed- room units are now often renting for more per square foot than two-bedroom units. To determine potential locations for new developments, we always look at where high-net-worth Boomers live. (We classify those as aged 55-74, with house- hold net worth of $250,000 or more.)
Boomers on theMove? LANDLORDS REPORT A SURGE IN NUMBER OF OLDER RENTERS SEEKING WALKABLE AREAS. WE THINK THERE MAY BE A TREND AFOOT.
by Jeff Kottmeier
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W
ill Baby Boomer homeownership fall? We believe it will. Earlier
landlord mentioned the surprising surge in older renters, many of whom sold their home and chose to rent a luxury apartment walkable to retail and entertainment. Chris Porter, our chief demographer, notes that early Baby Boomers still have homeowner-
Jeff Kottmeier is manager at John Burns Real Estate Consulting. The company, founded in 2001, provides independent research and consulting services related to the U.S. housing
this year, seven of us from John Burns Real Estate Consulting attended the National Multifamily Housing Con- ference, one of the most informative conferences of the year. Landlord after
industry. Its team of research analysts and con- sultants collects data in offices across the country. www.realestateconsulting.com
132 | think realty magazine | may :: june 2016
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