The financial crisis in the United States has been turbulent the last few years. Many markets and industries are down across the country because of the economic uncertainty.
However, one market that has stayed strong throughout those years is apartments. In the study “The Trillion Dollar Apartment Industry” published in February 2013 by The National Apartment Association and the National Multi Housing Council, it was found that apartment residents in the U.S. contributed $1.1 trillion to the national economy and supported 25.4 million jobs.
So what do those numbers actually mean? Well, a trillion dollar positive impact on the economy is always a good thing. Larger than that, though, the economic ripple effect can impact the way that regions, cities and towns plan their future, as well. For example, city planners can look at the money generated from apartments and may decide that building more apartments in the area would directly and positively impact their communities.
There are currently around 35 million people living in apartments in the U.S., but that number will continue to rise, according to the report, as more people look to rent. In fact, as a nation, the United States could see as many as seven million new, additional rental households in the next decade.
As the market for renters continues to grow, the demographics of renters will continue to shift. Young, single renters continue to be at the top of the list, but the market is growing for older residents as well as. This shift may be because the 50 and older population as well as young adults in their 20s are expected to see the biggest population increases among all demographics. In fact, “by 2015, there will be 67 million people aged 20 to 34— the prime years for renting.”
All the signs point to the fact that the rental market is bursting at the seams with different, potential renters. What it comes down to is the type of renter you specifically are looking for, because the Trillion Dollar Impact has shown that pretty much every type is out there. While some may worry that the market may become oversaturated with new rental units, the report makes it clear that the amount of apartments is not nearly sufficient to keep up with the growing demand.