It’s one of the biggest questions in the market today: to rent or to buy? With the volatility of the real estate market, this question remains at the top of consumers’ minds. However, as we see it, the multi-family market remains on a hot streak, making the answer pretty apparent: RENT.
The array of people choosing to rent over buying is the highest it’s ever been, from young professionals to empty nesters. So why is that you may ask?
There is a growing desire to have the ability for housing needs to remain flexible. The majority of the renting population is within the 35 years or younger demographic. It is important to have the ability to move at a moment’s notice to match their employment opportunities.
More people are choosing to move to desirable urban locations. To live the city life where you can be in the heart of it all with shopping, restaurants, and everything you need in walking distance. You could even get by without owning a car if you factor in ride-sharing and the growing interest of urban grocery stores.
Similar to office buildings, apartments have jumped on the amenities bandwagon. The assortment of impressive onsite amenities can include, a gym, pool, hot tub, community grill/fire pit, high-speed internet, and parking storage, to name a few. Providing more luxuries than most homes, along with eliminating the need for home maintenance (lawn care, plumbing, electrical, etc.).
Despite these other perks, the key factor supporting the rise in popularity of people choosing to rent over owning is, without a doubt, the cost. In an effort to break down the cost difference between renting v. buying, LendingTree compared the monthly rental and mortgage payments for the 50 largest metropolitan areas in the U.S. Three cities in the Midwest alone (Chicago, Milwaukee, and Louisville) made it into the top 10 locations where it is more affordable to rent an apartment than it is to buy a home.
The price of single-family homes across the country continues to rise. Not to mention all the added expenses that come with owning a home. That price tag, coupled with the want for luxury living and mobility, has made renting a more attractive solution.
Director of Acquisitions