Trends might not be what they seem.
The numbers are growing. According to Freddie Mac and their recent report, 59% of those surveyed stated they were looking to rent their next home. Those figures are up 4% from the end of 2016.
As some experts expected, the biggest jump is among the Millennial generation who may have not ever owned a home. 73% of them said they planned on renting. That was a leap up from 64% back in September of last year. Another surprising percentage was among suburban dwellers, rising from 48% at the end of 2016 to 57%.
This is not to say that there are not those surveyed who do aspire to home ownership, just that the numbers are lower than the last time Freddie reported. Those who are currently renting and looking to purchase eventually fell slightly from 45% to 41%. Similarly, those currently working toward owning fell from 21% to 15% from September of 2016.
An interesting fact that showed up in the report revealed that there might be a trend toward living in urban areas. 75% of renters surveyed stated they would consider downsizing if it allowed them to afford a place in an urban area, with half of those stating they are fairly or very willing to downsize.
These numbers do tend to be favorable for the long-term outlook of the apartment sector. Freddie reported that they expect lending volume to increase 3% to 6% by the end of 2017. Obviously, this would depend heavily on the movement of the 10-year Treasury rate.
Freddie Mac’s VP of Multifamily Research recently stated that it would seem that the multifamily market could see some growth based on demand, stable labor market and a favorable interest rate environment.