Metairie real estate
investors come from every kind of background, but all share a common trait:
they like to think ahead. For that reason, investors eyeing Metairie apartment
building prospects may want to take a close look at what’s going on with the
Millennial generation.
For those of us who are a bit uncertain about which group
is considered “Generation Y” and which are “Millennials,” there’s a reason for
that. Both terms refer to the same group—everyone born between 1977 and 2000. And
whatever you call them, they are a very important demographic. According to
some statistics, they are 80,000,000 strong! That makes them a larger demo than
Baby Boomers, and 20% larger than those who come next: the Gen X’ers.
PWC (PriceWaterhouseCoopers LLC), the widely-respected
financial and business advisers, have come up with some interesting
generalizations about Gen Y that could affect the prospects for apartment owners
and investors. According to their 2014 Trends Report, members of Generation
Y are more likely to live in either a medium-sized or big city than previous
generations. Generation Y’ers also plan to stay there for the foreseeable
future—40% of Gen Y’ers say they want to be living there in five years. This
compared with only 23% of generation X’ers and 14% of Baby Boomers.
Some other profile characteristics fall in line. Generation
Y’ers are the least car-friendly of any demographic. Two years ago, CNN
reported that there had been a 30% drop in the share of new car purchases by 18
– 34-year-olds. When asked about the community features they thought most
important, 82% thought living within walking distance of work and school was highly
important; and Gen Y’ers are also more likely than other generations to walk or
use public transit.
Generation Y’ers are also significantly more likely to be
on the move over the next five years. Approximately 63% fell into that
category, compared with to 42% of the overall adult population. A full 38% plan
to move into an apartment, duplex, row house or townhouse.
For Metairie apartment building investors seeking rental
income, there is more reason to be interested. According to a study produced by
the non-profit Urban Land Institute, the majority of Gen Y’ers do not intend to
purchase over the coming decade. That sounds like a reassuring note on the
demand side.
Real estate website Trulia had a final piece of the puzzle,
this one due to the slowly-building economic recovery. Their 2014 housing
predictions report forecasts that apartments will be the first stop for young
adults who are finally able to move out of their parents’ home.
All in all, it looks like the Metairie apartment building
market should be worth investigating this spring.
Interested to learn more? Call or text me today!
Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.
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