Home ownership is changing in the United States. Historically, home ownership was very high and viewed as a symbol of success. The financial crisis changed all that with many defaults on home mortgages. Today, home ownership rates rest at an all-time low, and most experts believe that this will continue.
This is not just because of the financial crisis, but it’s also been driven a lot by demographic changes.
This is especially true in millennials who face a very different set of challenges. Younger people have more student debt than they ever have in history, and are more prone to switch jobs than their parents or grandparents did.
Millennials also value convenience and independence. Uber has replaced owning a car for many. Spending more money on vacations and lifestyle choices has replaced savings for deposits on home purchases.
This creates a very compelling supply-demand imbalance for investing in apartments. The demand for apartments is quite high, and the supply that’s being built today simply can’t meet that demand.
The outlook for investing in apartments is strong. These investments offer an opportunity to generate predictable and consistent income.