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Shifting demographics: Apartments represent a key subsector of the broader rental market and offer interesting tactical and strategic opportunities
- January 1, 2024: Vol. 36, Number 1

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Shifting demographics: Apartments represent a key subsector of the broader rental market and offer interesting tactical and strategic opportunities

by Arthur Jones, Daniel Tomaselli and JD Stehwien

Demographic and economic changes are altering the way people live and, in turn, the demand landscape for housing. For example, millennials (those aged 27 to 42) are now the dominant population group in both the United States and Europe, accounting for roughly 20 percent of the population in each region. Including Generation Z, who are even younger than millennials, the prime-age renter cohort accounts for roughly 40 percent of the total population. This segment of the population has a different approach to living, with a focus on affordability and changing lifestyle preferences, giving rise to alternative living arrangements and the demand for sustainable and eco-friendly housing, presenting avenues for innovation and investment. From an economic perspective, it has been difficult for many millennials to save enough for first-time home purchases. Wage growth has failed to keep up with house price appreciation, particularly during the past two years when house price growth has averag

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