Renter household formation has outpaced owner household growth during the past few years spurring an increase in multifamily construction.
Yet according to data from the Fannie Mae National Housing Survey, 51 percent of the renter respondents stated that they would like to own a home someday. Even more telling, approximately 57 percent of those aged 18 to 34 years old – the cohort most likely to rent, according to the Census Bureau – also stated that they aspire to own a home. That sentiment, coming from the nation’s young adults, may suggest to multifamily rental developers that perhaps this cohort is not likely to turn the U.S. into a “rentership society” – at least, not by choice.
Read the latest edition of Housing Insights, as Fannie Mae’s Multifamily Economics and Market Research Group examines the demographic conditions that have contributed to the recent increase in multifamily supply, looks at the general characteristics of the new multifamily supply, and suggests implications for multifamily apartments given the continued stated preference to own among the primary renter cohort.
Economist, Multifamily Economics and Market Research
September 16, 2013
The author thanks Kim Betancourt, Patrick Simmons, and Orawin Velz of Fannie Mae for valuable comments in the creation of this Housing Insights. Of course, all errors and omissions remain the responsibility of the author.
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