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The New American Dream

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Why people are choosing to rent

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The New American Dream

  1. 1. WHY PEOPLE ARE CHOOSING TO RENT THE NEW 
 AMERICAN 
 DREAM
  2. 2. Onceuponatime,the AmericanDreamlooked somethinglikethis...
  3. 3. Notanymore
  4. 4. Today,morepeople
 arechoosingtomove
 outoftheirhomes...
  5. 5. andintoapartments Today,morepeople
 arechoosingtomove
 outoftheirhomes...
  6. 6. Homeownershiphas
 reacheda19-yearlow U. S . C E N S U S B U R E AU
  7. 7. InMay2014,thenational apartmentoccupancyreached 95%forthefirsttimein6years.
  8. 8. Nearlyhalfofallrentersareformer homeowners.Thispercentage continuestogrowdespiterecord lowhomeprices. 2012 2013 TODAY 33.6% 35.1% 44.1%
  9. 9. So,whatdoweknowabout thesenewrenters?
  10. 10. Theyareanewclassof consumerwhoare…
  11. 11. Renting by Choice Looking for Technology Local 
 Restaurants Urban FeelWalkability
  12. 12. 6 of 10people would sacrifice a bigger house 
 to live in a neighborhood that features a mix of residences, stores and businesses.
  13. 13. 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
  14. 14. 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!
  15. 15. Theyvaluecommunity,ideas, informationandahealthy
 work/lifebalance.
  16. 16. Millennials 
 who want to 
 live in an urban environment 77%
  17. 17. Theywanttobewithinwalking distanceofpeers,work,services andhangoutspots.
  18. 18. Millennialsarealsowaiting togetmarried,startfamilies andbuyhomes.
  19. 19. Marriedadults
 ages18-34in1983 46%
  20. 20. 30% Marriedadults
 ages18-34in2013
  21. 21. Marriedcouplesages
 18-34withchildrenin1983 39%
  22. 22. Marriedcouplesages
 18-34withchildrenin2013 29%
  23. 23. 36% Americans under age 35 who own a home, the lowest level 
 on record
  24. 24. Millennials’ attitudes toward homeownership has changed because of the housing crisis 
 and recession in the mid-2000s.
  25. 25. 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 FORECLOSED
  26. 26. The“BankofMomandDad”is closed.Sincetheirparentsmust rebuildtheirretirementportfolios, millennialsarenotgettingthesame downpaymentassistancethatthe generationbeforethemreceived.
  27. 27. Inaddition,many25-to
 34-year-oldshavetakenon consumerandeducational debtandarenowunable
 toqualifyforamortgage.
  28. 28. 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. 2007 2008 2009 2010 $98B $453B
  29. 29. Rentership rates for households aged 30-64 
 are the highest they’ve 
 been in 30 years. Particularly among households in their thirties, which is up by more than 
 9 percent in 8 years.
  30. 30. Theyarealsobabyboomers whoaretradingintheirsingle- familysuburbanhomestobe closertourbancenters.
  31. 31. 100%Estimatedincreaseinrenters
 ofthesameagefrom2010to2013
  32. 32. Thesearepeoplewhocanafford
 tobuybutchoosetorent.
  33. 33. 50% Over half of renters in U.S. metro areas could afford 
 to own a home
  34. 34. Needmoreproof?
  35. 35. Lookattheaveragepersoninterested inrentingatHaven,aluxuryrental communityatAvalon,a$600million mixed-usedevelopmentinAlpharetta, GAopeningOctober2014…
  36. 36. 5% 29% 34% 23% 8% 51-65 26-35 Under2566+ Interested
 Renters byage Themajorityofinterested rentersarebetween36
 and65yearsold. 36-50
  37. 37. ofprospects currentlyown theirhomes 47%
  38. 38. butareconsidering
 amoveforamenities
 andthelifestyle luxuryrentalsoffer. HOUSE FORSALE
  39. 39. Themajorityofinterested rentershaveanaverage salaryof$100,000. 18% 17% 14% 28% 23% Interested
 Renters byannual
 income NoAnswer $40K-$75K $76K -$125K $126K-$199K $200K+
  40. 40. Inmanycases,peopleareabandoning “TheAmericanDream”ofhomeownership andchoosingluxuryrentalsbecauseit’s morewalkableandaccessibletodesirable amenitiesthathigh-endmixed-use developmentsoffer. RICHARD MUNGER PARTNER AND V.P. OF DEVELOPMENT NORTH AMERICAN PROPERTIES
  41. 41. Ashiftinattitudeandvalues iscontributingtomore rentersenteringthemarket.
  42. 42. Therentaleconomyispart
 ofagrowingpost-recession movementtovalue experiencesoverpossessions. CLAIRE CAIN MILLER THE NEW YORK TIMES
  43. 43. Homeownersare oftenanchoredto theirneighborhoods…
  44. 44. Whilerentershave
 theeaseofmobility
 astheyenterdifferent stagesoflife.
  45. 45. Rentersarealsofreefrom someofthedailystresses plaguinghomeowners.
  46. 46. They don’t have to worry about yard work, home repairs and unexpected maintenance expenses.
  47. 47. They can simply enjoy 
 what’s outside their front door.
  48. 48. Whilehomeownershipmay haveitsperks,it’sprettyhard
 tocompetewiththis…
  49. 49. AVALON
  50. 50. PIKE & ROSE
  51. 51. MISORA AT 
 SANTANA ROW
  52. 52. THE GROVE
  53. 53. THE AMERICANA AT BRAND
  54. 54. Peoplepayapremium
 forthislifestyle.
  55. 55. AVERAGE APT. SAN JOSE, CA MISORA AT SANTANA ROW Studio $905 Studio $1,775425squarefeet500squarefeet
  56. 56. AVERAGE APT. ALPHARETTA, GA HAVEN AT AVALON 2B $1,162 2B $2,3501,200squarefeet1,244squarefeet
  57. 57. Aswalkabilityincreases
 inacommunity,sodoes propertyvalue. $300
 per 
 month 
 to apt.
 rents $82
 per sq. 
 ft. to 
 home
 values $9
 per sq. 
 ft. to 
 office rents $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $$ $$ $$$ $$ $$ $$ $$ $$ $ $ $ $7
 per sq. ft. to retail rents $ $$ $$$ $ $$ $$$ $ $$$
  58. 58. Sizeofnew apartmentsin
 U.S.felltolowest square footage since2002,as leasingcontinues togrowmore
 expensive square feet 1,043
  59. 59. Peoplearedownsizing
 theirlivingspace…
  60. 60. …andoptingfor
 asleeker,more modernoption.
  61. 61. Havingtodealwith inconveniencesof everydaylife.
  62. 62. Luxuryproperties offeraconcierge, exclusiveservices&
 benefitslikevalet.
  63. 63. Apartments are shrinking because when 
 you live in a mixed-use community, what’s 
 outside becomes an extension of your 
 livable space. This is why developments like 
 The Grove and Pike & Rose are achieving 
 higher rents and higher occupancies. MARK TORO MANAGING PARTNER NORTH AMERICAN PROPERTIES
  64. 64. prospectsareonthe waitinglistforoneof the250luxuryrentals atHavenatAvalon 2,025
  65. 65. Here’swhattheyare liningupfor…
  66. 66. Gigabit Community Programmed Public Spaces Urban FeelWalkability Five-Star Concierge
  67. 67. bestrestaurants IN YOUR BACKYARD
  68. 68. bestretailers IN YOUR LIVING ROOM
  69. 69. Developersareoptimistic
 thistrendwillcontinue,as multifamilystartshaveseen double-digitgrowthoverthe lastfewyearstomeet demandforrentalunits.
  70. 70. Peoplewillstartconsideringanew versionofTheAmericanDream.
  71. 71. HavenatAvalon LIVE IT
  72. 72. November2014 MOVE IN
  73. 73. ThisSlideSharebroughttoyouby
  74. 74. Didyoulikethisslidedeck?
 CheckoutourotherSlideShares!
  75. 75. WWW WWW WWW
  76. 76. SetYourSiteinGreaterPhiladelphiaby Jerome Rozen (image) Friendshavingfunoutdoors 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) CrowdofPeopleWalkingontheStreetby 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)
 MartiniGlass by Stanislav Levin / The Noun Project (icon)
 ShoppingBag by Erin Standley from The Noun Project
 Dumbbell by Ola Möller from The Noun Project
 MortarBoard by Paul Souders from The Noun Project
 
Anchor designed by Jeremy Elder / The Noun Project (icon) Airplane designed by misirlou / The Noun Project (icon) PikeandRoseGroundbreaking by Maryland GovPics / Flickr (image) SantanaRow by Bruno Pinheiro / Flickr (image) TheGroveinLosAngeles,fromabove,no.12052203 by Eric E. Johnson / Flickr (image) TheMcMansion by Dean Terry / Flickr (image) ThumbsUp designed by Alv Jørgen Bovolden / The Noun Project (icon) USOpenParkingLot by alex92287 / Flickr (image) Caulkingwindow by kimkole / iStock.com (image) CookieCutterHouses by Ann Walsh / Flickr (image) SantanaRow by Eric Fredericks / Flickr (image) ReceptionBelldesigned 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) TheAmericanaatBrand by Chris Yarzab / Flickr (image) IMAGE SOURCES
  77. 77. 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 DATA SOURCES

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