REAL ESTATE NEWS

Housing demand in the United States will continue to benefit from demographic trends, according to a RealPage analysis incorporating several layers of data.

RealPage started with the US Census Bureau's tracking of people per age combined with the Pew Research Center's banding of generations. This includes the Silent Generation (1928-1945), Baby Boomers (1946-1964), Generation X (1964-1980), Millennials (1981-1996), Generation Z (1997-2012) and Generation Alpha (2013+). Baby Boomers encompassed 78 million people at the generation's peak, which is 13.5 million more than Gen X. Millennials peaked at 73 million, which is about five million more than Gen Z.

RealPage also used National Association of Realtors statistics about the age of apartment renters and first-time home buyers in the US to create its analysis. The median age of apartment renters is 32 years old, according to NAR. The median age of first-time homebuyers is 35.

Although Gen Alpha is on the smaller side, RealPage said it expects the generation to expand as the cohort ages into adulthood due to immigration.

Multifamily demand is likely to be strongest in markets where job growth is strong, attracting members of younger generations. Markets in the West and South are expected to have some of the nation's most significant job growth over the next year, according to RealPage.

Topping the list of markets where the category is expected to be strong is Provo, Utah, with an anticipated 2% increase in its employment base by the third quarter of 2025. In the South, most of the strongest job growth markets are in Florida, said RealPage. Job growth is forecasted to hit 1.9% in Myrtle Beach in the coming year, while Cape Coral should see 1.7% growth, and Orlando and Naples are likely to grow by 1.6%, RealPage predicted.

Phoenix is expected to add nearly 40,000 new jobs, an increase of 1.6%, over the next year. All of these markets are adding jobs at nearly double the national average of 0.9%.

Source: GlobeSt/ALM