How To Attract Baby Boomer Renters to Your Apartment Community – Winston Rowe and Associates
The multifamily housing industry has a new driving demographic, and surprisingly, it's not Millennials or Generation Z. It's Baby Boomers.
By: Winston Rowe and Associates
This demographic that is currently 76+ million-strong is so impactful that its newest wave of renters has even been dubbed the Silver Tsunami, a term that refers to this group's overwhelming numbers as well as their strong impact on several industries including healthcare and, of course, multifamily housing.
Baby Boomers are set to make a real impact on the industry. According to a recent national study examining renter trends from 2009 to 2015, Boomers composed the largest growing tenant profile at 28 percent, compared to only a 3 percent increase for renters under 34 years of age.
This equates to almost 2.5 million senior households joining the ranks of younger renters. By 2020, over 5 million seniors are expected to rent their home.
Given that Baby Boomers have established wealth over their younger predecessors, they also possess significant buying power.
It's for this reason that seniors are embracing what's known as "lifestyle renting" – or renting out of preference, not necessity. Gone are the days when seniors live out the remainder of their active lives in homes that are merely empty nests—too large and expensive to care for now that their children have moved on.
On the contrary, today's seniors are in better health and more active than ever, 50 is the new 40. They realize the convenience that many of today's apartment communities can provide, both in terms of on-site amenities and proximity to medical centers, restaurants, shopping complexes, and more.
Another bonus associated with older residents? Senior renters are more inclined to stay put once they sign a lease, since statistically speaking, they're less likely to move for careers, family-building, or other realms of personal development.
So, if you're interested in attracting residents who rent as a conscious lifestyle choice and pose a minimal turnover risk. Try to lure the much sought-after Silver Tsunami to your property's front door.
Published by Winston Rowe and Associates. A national source for commercial real estate investor capital. The can be contacted at 248-246-2243 or visit them on line at http://www.winstonrowe.com