Demand trends support apartments, but supply trends vary based on segment

The apartment sector will be supported by strong demographics over the next decade, but the class A and class B segments have experienced diverging supply trends.

Demographics continue to be a significant demand driver for the apartment market, notes Daniel Walsh, CEO of Citymark Capital. The average renter is 32 years old, and the renter cohort is set to continue to increase over the next 10 years.

“The number of 18- to 34-year-olds will continue to grow for the next decade,” says Walsh.

He also points to rising student debt levels and delayed family formation as demographic tailwinds for the apartment market, keeping younger people renting rather than owning for longer. The U.S. homeownership rate fell to 64.2 percent in the first quarter, according to the U.S. Census Bureau. The rate hovered around 69 percent in the mid-2000s.

“People are not buying single-family homes at the pace they were 10 years ago,” says Robert Hart, president and CEO of