The document discusses the shift in the American Dream from homeownership to renting, highlighting that homeownership rates are at a 19-year low, with many renters being former homeowners who prioritize lifestyle and amenities offered by urban living. Millennials, influenced by economic factors and changing societal values, are opting for luxury rentals that provide walkability and community over square footage. Furthermore, the increasing rentership among various age groups indicates a significant transformation in housing preferences and living arrangements.

1. THE NEW
AMERICAN DREAM
WHY PEOPLE ARE CHOOSING TO RENT

2. Once upon a time, the
American Dream looked
something like this...

4. Not anymore

5. Today, more people
are choosing to move
out of their homes...

6. and into apartments
Today, more people
are choosing to move
out of their homes...

7. Home ownership has
reached a 19-year low
U. S . CENSUS BUREAU

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

10. So, what do we know about
these new renters?

11. They are a new class of
consumer who are…

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!

17. They value community, ideas,
information and a healthy
work/life balance.

18. Millennials
who want to
live in an urban
environment 77%

19. They want to be within walking
distance of peers, work, services
and hangout spots.

21. Millennials are also waiting
to get married, start families
and buy homes.

22. Married adults
ages 18-34 in 1983 46%

23. Married adults
ages 18-34 in 2013
30%

24. Married couples ages
18-34 with children in 1983 39%

25. Married couples ages
18-34 with children in 2013 29%

26. 36%
Americans
under age 35
who own a
home, the
lowest level
on record

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.

34. 100% Estimated increase in renters
ages 65+ from 2010 to 2013

35. These are people who can afford
to buy but choose to rent.

36. 50%
Over half of
renters in U.S.
metro areas
could afford
to own a home

37. Need more proof?

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

40. of prospects
currently own
their homes
47%

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

46. Homeowners are
often anchored to
their neighborhoods…

47. While renters have
the ease of mobility
as they enter different
stages of life.

48. Renters are also free from
some of the daily stresses
plaguing homeowners.

49. They don’t have to worry
about yard work, home
repairs and unexpected
maintenance expenses.

50. They can
simply
enjoy
what’s
outside
their front
door.

51. While homeownership may
have its perks, it’s pretty hard
to compete with this…

52. AVALON

53. PIKE & ROSE

54. MISORA AT
SANTANA ROW

55. THE AMERICANA
AT BRAND

56. People pay a premium
for this lifestyle.

57. AVERAGE APT.
SAN JOSE, CA
MISORA AT
SANTANA ROW
Studio $905 Studio $1,775
500 square feet 425 square feet

58. AVERAGE APT.
ALPHARETTA, GA
HAVEN AT
AVALON
2B $1,162 2B $2,350
1,244 square feet 1,200 square feet

59. As walkability increases
in a community, so does
property value.
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rents
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$82
per sq.
ft. to
home
values
$$$
$9
per sq.
ft. to
office
rents
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$7
per sq.
ft. to
retail
rents
$$
$$ $ $

60. Size of new
apartments in
U.S. fell to lowest
square footage
since 2002
square feet 1,043

61. People are downsizing
their living space…

62. … and opting for
a sleeker, more
modern option.

63. Having to deal with
inconveniences of
everyday life.

64. Luxury properties
offer a concierge,
exclusive services &
benefits like valet.

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

67. Here’s what they are
lining up for…

68. Gigabit
Community
Programmed
Public Spaces
Walkability Urban Feel
Five-Star
Concierge

69. best restaurants
IN YOUR BACKYARD

70. best retailers
IN YOUR LIVING ROOM

71. People are already considering a
new version of The American
Dream.

72. Haven at Avalon
LIVE IT

73. MOVE IN
November 2014

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76. WWW
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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