Last modified on January 13th, 2016
By Alexis Hammond
While rental houses are still sought after by a lot of people, more apartments are being built in greater numbers because there is a rising demand for that type of living. Approximately 2 million new renter-occupied households were added in 2014, while the number of owner-occupied households decreased by more than 350,000, according to report from the U.S. Census Bureau in early 2015. As people choose apartment living in greater numbers, there is also a growing need for property managers to help work with owners and tenants. That’s good news for property managers, since it can help keep their companies profitable and growing into the new year and beyond. It’s also important information for people who are looking for a place to rent, and investors who are interested in buying more rental properties.
Why Is Apartment Living So Popular?
There are many reasons that apartments are popular. The idea of a more communal style of living can appeal to people who are alone, or to those who like to make friends and want to have interactions with others. If they have friends or family who live in an apartment complex and enjoy their time there that can also lead them toward the idea that they want to choose an apartment to rent, as well.
Another reason that apartment buildings are becoming even more popular today is due to the idea that not everyone wants to have a house where they have to worry about upkeep. In an apartment complex, maintenance and cleaning needs are limited to the inside of the apartment. That frees up time to do other things, and makes it easier for people who may not be able to care for a yard and a home’s exterior as easily. Whether someone chooses an apartment for convenience (ease of care, close to work, etc.) or because of the social aspects, the popularity of apartment buildings continues to rise.
According to Axiometrics, the job market is affecting apartment popularity, too, with more low-wage jobs (for example, serving and food preparation jobs) being created and more workers needing places to live. It’s also partly due to millennials delaying homeownership.
Are People Still Renting Houses?
People are still renting houses. There will generally always be people who don’t want to live in an apartment, for a variety of reasons. Some people think that apartments are too constrictive, or too noisy. They may really enjoy having a garden or taking care of a yard. Or maybe they have pets and need a yard for their dog, or need more space for their growing family. It’s certainly possible to find a rental house where a garden can be grown, or where a dog can have the run of the yard. With that in mind, people do continue to rent houses instead of apartments, just not in the large numbers that were seen in the past. The landscape of rentals is shifting, and property management companies must shift along with it.
What Will Future Trends Show?
Future trends indicate that the popularity of apartment living is going to continue to grow. People are moving back into downtown areas in many cities instead of living in the suburbs, and as they do that the largest option open to them is an apartment complex. With the convenience these complexes offer, along with all the perks and amenities that can be found in a number of them, it’s very likely that more people will continue to choose a rental apartment instead of a rental house in the future.