Millennials are the largest population cohort the U.S. has ever seen with an estimated 83.1 million from 18 to 34 years of age (U.S. Census Bureau). As such, they are having the largest impact on rental housing markets in history. Their impact, however, just like their housing options, vary significantly across the country. Once again I invoke TINSTAANREM clause — There Is No Such Thing As A National Real Estate Market. Each real estate market is different. Ditto the economy. High apartment rents do necessarily correspond to high-income markets.
RealtyTrac looked at the 52 counties in the U.S. where the Millennial population (born from 1979 to 1993) increased a minimum 10 percent from 2008 to 2013. Data included in their analysis were:
- Percent Millennial population growth from 2008 to 2013
- 50th percentile average rent for a 3-bedroom property in 2016 as report by the HUD
- Q2 2015 weekly average wage data from Bureau of Labor Statistics
- RealtyTrac calculated Rent Affordability by extrapolating average weekly wages to monthly, then expressing monthly rent as a percentage of imputed monthly income
Bad news first. What are the worst (least affordable rental markets in the U.S.? Not surprisingly, New York topped the list.
Now the good news – counties with the most affordable rents versus incomes in counties that had a minimum 10 percent increase in the Millennial population from 2008 through 2013.
This is just a subset of the entire study in which RealtyTrac analyzed whether it was better to rent or own, an analysis which included 505 counties across the country.
To read the entire article from RealtyTrac click http://www.realtytrac.com/news/home-prices-and-sales/realtytrac-2016-rental-affordability-report/
Do note that New York counties were included in both lists – the most and least affordable. The difference is the average income, since rents were taken at the MSA level but incomes at the county level.
This should put to bed any concerns about an aging Boomer population since there are millions more Millennials to fill jobs, homes and apartments.
Ted