Developers Hoping Millennials Will Fill Apartment Vacancies

New York, NY, March 13, 2017—Apartment developers are betting on Millennials to help fill the growing number of vacant apartments across the U.S., according to National Real Estate Investor.  

The online journal reports, “More than a million Millennials still live at home—less than a few years ago, but still a substantial number, including some who are likely to eventually rent apartments. ‘There’s potential upside in demand there,’ says Ron Witten, founder of Witten Advisors, an advisory firm that focuses on the apartment sector.”

Though vacancy rates are slowly creeping upward, banks have been hesitant to lend money for new developments, so the market is relatively balanced, though rents are creeping higher. “We don’t see much in the way of downward pressure on rents, but right now it is hard to underwrite significant pops in rent,” says Ben Sayles, director in the Boston office of capital services provider HFF.

Thus far, the percentage of vacant apartments has stayed well below 5% on average nationwide.