As more people choose to rent apartments over buying homes, North American Properties - Atlanta (NAP) has released “The New American Dream” SlideShare that looks at who the new renter is, what factors are contributing to this trend and what it means for the future of multi-housing. NAP first became interested in studying this phenomenon after receiving a flood of inquiries for its luxury rental property, Haven, at Avalon, a $600 million mixed-use development opening Oct. 30 in Alpharetta, Georgia.
8. In May 2014, the national
apartment occupancy reached
95% for the first time in 6 years.
9. Nearly half of all renters are former
homeowners. This percentage
continues to grow despite record
low home prices.
33.6% 35.1%
44.1%
2012 2013 TODAY
13. Renting by
Choice
Looking for
Technology
Local
Restaurants
Walkability Urban Feel
14. 6 of 10 people would sacrifice a bigger house
to live in a neighborhood that features a
mix of residences, stores and businesses.
15. Millennials tend
to place more value
on amenities than
on square footage.
Some Desirable
Amenities Include…
✓ Wi-Fi Connectivity
✓ Communal Spaces
✓ Walkable Locations
✓ High-End Fitness
Center
16. This is a generation of online social
networking and herding—or meeting at
a social gathering in a moment’s notice.
Hey! We’re meeting
at Starbucks in 5 mins.
Want to join?
Sure! See you soon!
27. Millennials’ attitudes toward
homeownership have changed
because of the housing crisis
and recession in the mid-2000s.
28. Many saw their
parents lose a
significant portion
of their savings
due to decreased
home prices and
have since lost
confidence that
homeownership
is the way to
develop wealth.
HOUSE
FO R E C L O S E D
29. The “Bank of Mom and Dad” is
closed. Since their parents must
rebuild their retirement portfolios,
millennials are not getting the same
down payment assistance that the
generation before them received.
30. In addition, many 25- to
34-year-olds have taken on
consumer and educational
debt and are now unable
to qualify for a mortgage.
31. Federal student loans outstanding
have shot up 360% since the start of
the recession, rising from $98 billion
to $453 billion in just four years.
$98B
$453B
2007 2008 2009 2010
32. Rentership rates for
households aged 30-64 are the
highest they’ve been in 30
years.
33. They are also baby boomers
who are trading in their single-family
suburban homes to be
closer to urban centers.
38. Look at the average person interested
in renting at Haven, a luxury rental
community at Avalon, a $600 million
mixed-use development in Alpharetta,
GA opening October 2014…
39. Under 35 31% 51+
34%
Interested
Renters
by age
34%
Interested renters are
equally distributed by age.
36-50
41. HOUSE
FOR SALE
but are considering
a move for amenities
and the lifestyle
luxury rentals offer.
42. $126K +
31%
28%
No Answer
23%
18%
Interested
Renters
by annual
income
>$75K
$76K-$125K+
43. “In many cases, people are abandoning
The American Dream of homeownership
and choosing luxury rentals because of
walkability and accessibility to desirable
amenities that high-end mixed-use
developments offer.”
RICHARD MUNGER
PARTNER AND V.P. OF DEVELOPMENT
NORTH AMERICAN PROPERTIES
44. A shift in attitude and values
is contributing to more
renters entering the market.
45. “The rental economy is part
of a growing post-recession
movement to value
experiences over possessions.”
CLAIRE CAIN MILLER
THE NEW YORK TIMES
65. “Apartments are shrinking because when
you live in a mixed-use community, what’s
outside becomes an extension of your
living space. This is why developments like
Santana Row and Pike & Rose are achieving
higher rents and higher occupancies.”
MARK TORO
MANAGING PARTNER
NORTH AMERICAN PROPERTIES
66. 2,025
prospects are on the
interest list for one of
the 250 luxury rentals
at Haven at Avalon
77. IMAGE SOURCES
Set Your Site in Greater Philadelphia by Jerome Rozen (image)
Friends having fun outdoors by Svetlana Damjanac / iStock.com (image)
Smartphone designed by George Agpoon / The Noun Project (icon)
Footprint designed by Jule Steffen & Matthias Schmidt / The Noun Project (icon)
City designed by Nicholas Menghini / The Noun Project (icon)
Crowd of People Walking on the Street by Rafael Ramirez Lee / Shutterstock.com (image)
Receiver by Sergey Krivoy / The Noun Project (icon)
Coffee by Sam Ahmed / The Noun Project (icon)
Car by Laura Beggs from The Noun Project (icon)
Martini Glass by Stanislav Levin / The Noun Project (icon)
Shopping Bag by Erin Standley from The Noun Project
Dumbbell by Ola Möller from The Noun Project
Mortar Board by Paul Souders from The Noun Project
Anchor designed by Jeremy Elder / The Noun Project (icon)
Airplane designed by misirlou / The Noun Project (icon)
Pike and Rose Groundbreaking by Maryland GovPics / Flickr (image)
Santana Row by Bruno Pinheiro / Flickr (image)
The Grove in Los Angeles, from above, no. 12052203 by Eric E. Johnson / Flickr (image)
The McMansion by Dean Terry / Flickr (image)
Thumbs Up designed by Alv Jørgen Bovolden / The Noun Project (icon)
US Open Parking Lot by alex92287 / Flickr (image)
Caulking window by kimkole / iStock.com (image)
Cookie Cutter Houses by Ann Walsh / Flickr (image)
Santana Row by Eric Fredericks / Flickr (image)
Reception Bell designed by Catia Marsh Mallow / The Noun Project (icon)
Footprint designed by Jule Steffen & Matthias Schmidt / The Noun Project (icon)
City designed by Nicholas Menghini / The Noun Project (icon)
Wireless designed by Edward Boatman / The Noun Project (icon)
The Americana at Brand by Chris Yarzab / Flickr (image)
78. DATA SOURCES
Axiometrics | axiometrics.com/company/pressreleases/apartment-occupancy-
hits-95
Survey by Apartments.com | realestateeconomywatch.com/2014/01/nearly-half-
of-all-renters-are-ex-homeowners/
Survey by Trulia | magazine.good.is/articles/most-americans-want-a-walkable-
neighborhood-not-a-big-house
National Multi Housing Council (NMHC) | finance.yahoo.com/news/
landmark-resident-survey-identifies-top-173400335.html
National Association of Realtors | realtor.org/articles/how-millennials-move-the-
car-less-trends
U.S. Census Bureau | tampabay.com/news/business/realestate/pricey-posh-tiny-
apartments-rule-tampa-bays-big-money-rental-boom/2189650
Urban Land Magazine | urbanland.uli.org/infrastructure-transit/housing-america-
s-graying-population/
Harvard Joint Center for Housing Studies | harvard-cga.maps.arcgis.com/
apps/StorytellingTextLegend/index.html?
appid=7e85ff667f804fe0aaf10a5a27db9c39
Hart Research | macfound.org/media/files/
How_Housing_Matters_2014_FINAL_REPORT.pdf
Rent Comparison (San Jose, CA) | forrent.com/apartment-community-profile/
1000059389.php
Rent Comparison (Alpharetta, GA) | apartmentguide.com/apartments/
Georgia/Alpharetta/The-Lex/259/
Study by Brookings Institution | nytimes.com/2012/05/27/opinion/sunday/
now-coveted-a-walkable-convenient-place.html?_r=1&
U.S. Census Bureau | census.gov/construction/chars/pdf/
mfu_medavgsqft.pdf
U.S. Commerce Department | bloomberg.com/news/2014-07-10/renters-trading-
size-for-frills-fuel-u-s-apartment-boom.html
http://www.nytimes.com/2014/08/30/upshot/is-owning-overrated-the-rental-economy-
rises.html?_r=0