SS260: How Demographics Are Driving Demand for Apartments

Why are millennials and Gen Z choosing rent over homeownership—and why is this shift reshaping the U.S. housing market?

For decades, owning a home was considered the American Dream. Today, that narrative is changing. Younger generations are delaying or completely bypassing homeownership, not because they’ve failed—but because the math, lifestyle, and priorities have changed.

In this Strategy Saturday episode, we break down the demographic trends driving apartment demand and explain why renting is becoming a long-term choice rather than a temporary phase. This isn’t a short-term housing cycle. It’s a structural shift that real estate investors need to understand.

We explore how:

• Millennials in their 30s and 40s are delaying homeownership

• Gen Z is entering the workforce as renters by default

• Rising home prices and mortgage rates are extending renter tenure

• Lifestyle flexibility and career mobility favor renting over owning

• Baby boomers are downsizing into apartments and senior-friendly communities

• Household formation trends are increasing multifamily demand

• Renting is often more efficient than owning when you factor in hidden costs

You’ll also learn why the idea that “buying is always better than renting” ignores maintenance, repairs, time, and opportunity cost—and why many high-income households are now renters by choice.

For investors, this episode explains why apartment demand will stay strong, why multifamily demand is being driven by demographics rather than speculation, and how the apartment market is being redefined from both ends of the age spectrum.

If you’re trying to understand the future of apartment renting in the United States, this episode provides the framework.

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