Why people are choosing to rent

1. WHY PEOPLE ARE CHOOSING TO RENT
THE NEW
AMERICAN
DREAM

2. Onceuponatime,the
AmericanDreamlooked
somethinglikethis...

4. Notanymore

5. Today,morepeople
arechoosingtomove
outoftheirhomes...

6. andintoapartments
Today,morepeople
arechoosingtomove
outoftheirhomes...

7. Homeownershiphas
reacheda19-yearlow
U. S . C E N S U S B U R E AU

8. InMay2014,thenational
apartmentoccupancyreached
95%forthefirsttimein6years.

9. Nearlyhalfofallrentersareformer
homeowners.Thispercentage
continuestogrowdespiterecord
lowhomeprices.
2012 2013 TODAY
33.6%
35.1%
44.1%

10. So,whatdoweknowabout
thesenewrenters?

11. Theyareanewclassof
consumerwhoare…

13. Renting by
Choice
Looking for
Technology
Local
Restaurants
Urban FeelWalkability

14. 6 of 10people would sacrifice a bigger house
to live in a neighborhood that features a
mix of residences, stores and businesses.

15. Millennials tend
to place more value
on amenities than
on square footage.
Some Desirable
Amenities Include…
✓ Wi-Fi Connectivity
✓ Communal Spaces
✓ Walkable Locations
✓ High-End Fitness
Center

16. This is a generation of online social
networking and herding—or meeting at
a social gathering in a moment’s notice.
Hey! We’re meeting
at Starbucks in 5 mins.
Want to join?
Sure! See you soon!

17. Theyvaluecommunity,ideas,
informationandahealthy
work/lifebalance.

18. Millennials
who want to
live in an urban
environment
77%

19. Theywanttobewithinwalking
distanceofpeers,work,services
andhangoutspots.

21. Millennialsarealsowaiting
togetmarried,startfamilies
andbuyhomes.

22. Marriedadults
ages18-34in1983
46%

23. 30%
Marriedadults
ages18-34in2013

24. Marriedcouplesages
18-34withchildrenin1983
39%

25. Marriedcouplesages
18-34withchildrenin2013
29%

26. 36%
Americans
under age 35
who own a
home, the
lowest level
on record

27. Millennials’ attitudes toward
homeownership has changed
because of the housing crisis
and recession in the mid-2000s.

28. Many saw their
parents lose a
significant portion
of their savings
due to decreased
home prices and
have since lost
confidence that
homeownership
is the way to
develop wealth.
HOUSE
FORECLOSED

29. The“BankofMomandDad”is
closed.Sincetheirparentsmust
rebuildtheirretirementportfolios,
millennialsarenotgettingthesame
downpaymentassistancethatthe
generationbeforethemreceived.

30. Inaddition,many25-to
34-year-oldshavetakenon
consumerandeducational
debtandarenowunable
toqualifyforamortgage.

31. Federal student loans outstanding
have shot up 360% since the start of
the recession, rising from $98 billion
to $453 billion in just four years.
2007 2008 2009 2010
$98B
$453B

32. Rentership rates for
households aged 30-64
are the highest they’ve
been in 30 years.
Particularly among
households in their thirties,
which is up by more than
9 percent in 8 years.

33. Theyarealsobabyboomers
whoaretradingintheirsingle-
familysuburbanhomestobe
closertourbancenters.

34. 100%Estimatedincreaseinrenters
ofthesameagefrom2010to2013

35. Thesearepeoplewhocanafford
tobuybutchoosetorent.

36. 50%
Over half of
renters in U.S.
metro areas
could afford
to own a home

37. Needmoreproof?

38. Lookattheaveragepersoninterested
inrentingatHaven,aluxuryrental
communityatAvalon,a$600million
mixed-usedevelopmentinAlpharetta,
GAopeningOctober2014…

39. 5%
29%
34%
23%
8%
51-65 26-35
Under2566+
Interested
Renters
byage
Themajorityofinterested
rentersarebetween36
and65yearsold.
36-50

40. ofprospects
currentlyown
theirhomes
47%

41. butareconsidering
amoveforamenities
andthelifestyle
luxuryrentalsoffer.
HOUSE
FORSALE

42. Themajorityofinterested
rentershaveanaverage
salaryof$100,000. 18%
17%
14%
28%
23%
Interested
Renters
byannual
income
NoAnswer
$40K-$75K
$76K -$125K
$126K-$199K
$200K+

43. Inmanycases,peopleareabandoning
“TheAmericanDream”ofhomeownership
andchoosingluxuryrentalsbecauseit’s
morewalkableandaccessibletodesirable
amenitiesthathigh-endmixed-use
developmentsoffer.
RICHARD MUNGER
PARTNER AND V.P. OF DEVELOPMENT
NORTH AMERICAN PROPERTIES

44. Ashiftinattitudeandvalues
iscontributingtomore
rentersenteringthemarket.

45. Therentaleconomyispart
ofagrowingpost-recession
movementtovalue
experiencesoverpossessions.
CLAIRE CAIN MILLER
THE NEW YORK TIMES

46. Homeownersare
oftenanchoredto
theirneighborhoods…

47. Whilerentershave
theeaseofmobility
astheyenterdifferent
stagesoflife.

48. Rentersarealsofreefrom
someofthedailystresses
plaguinghomeowners.

49. They don’t have to worry
about yard work, home
repairs and unexpected
maintenance expenses.

50. They can
simply
enjoy
what’s
outside
their front
door.

51. Whilehomeownershipmay
haveitsperks,it’sprettyhard
tocompetewiththis…

52. AVALON

53. PIKE & ROSE

54. MISORA AT
SANTANA ROW

55. THE GROVE

56. THE AMERICANA
AT BRAND

57. Peoplepayapremium
forthislifestyle.

58. AVERAGE APT.
SAN JOSE, CA
MISORA AT
SANTANA ROW
Studio
$905
Studio
$1,775425squarefeet500squarefeet

59. AVERAGE APT.
ALPHARETTA, GA
HAVEN AT
AVALON
2B
$1,162
2B
$2,3501,200squarefeet1,244squarefeet

60. Aswalkabilityincreases
inacommunity,sodoes
propertyvalue.
$300
per
month
to apt.
rents
$82
per sq.
ft. to
home
values
$9
per sq.
ft. to
office
rents
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$7
per sq.
ft. to
retail
rents
$
$$
$$$
$ $$
$$$
$
$$$

61. Sizeofnew
apartmentsin
U.S.felltolowest
square footage
since2002,as
leasingcontinues
togrowmore
expensive
square feet
1,043

62. Peoplearedownsizing
theirlivingspace…

63. …andoptingfor
asleeker,more
modernoption.

64. Havingtodealwith
inconveniencesof
everydaylife.

65. Luxuryproperties
offeraconcierge,
exclusiveservices&
benefitslikevalet.

66. Apartments are shrinking because when
you live in a mixed-use community, what’s
outside becomes an extension of your
livable space. This is why developments like
The Grove and Pike & Rose are achieving
higher rents and higher occupancies.
MARK TORO
MANAGING PARTNER
NORTH AMERICAN PROPERTIES

67. prospectsareonthe
waitinglistforoneof
the250luxuryrentals
atHavenatAvalon
2,025

68. Here’swhattheyare
liningupfor…

69. Gigabit
Community
Programmed
Public Spaces
Urban FeelWalkability
Five-Star
Concierge

70. bestrestaurants
IN YOUR BACKYARD

71. bestretailers
IN YOUR LIVING ROOM

72. Developersareoptimistic
thistrendwillcontinue,as
multifamilystartshaveseen
double-digitgrowthoverthe
lastfewyearstomeet
demandforrentalunits.

73. Peoplewillstartconsideringanew
versionofTheAmericanDream.

74. HavenatAvalon
LIVE IT

75. November2014
MOVE IN

76. ThisSlideSharebroughttoyouby

77. Didyoulikethisslidedeck?
CheckoutourotherSlideShares!

78. WWW
WWW
WWW

79. SetYourSiteinGreaterPhiladelphiaby Jerome Rozen (image)
Friendshavingfunoutdoors by Svetlana Damjanac / iStock.com (image)
Smartphone designed by George Agpoon / The Noun Project (icon)
Footprint designed by Jule Steffen & Matthias Schmidt / The Noun Project (icon)
City designed by Nicholas Menghini / The Noun Project (icon)
CrowdofPeopleWalkingontheStreetby Rafael Ramirez Lee / Shutterstock.com (image)
Receiver by Sergey Krivoy / The Noun Project (icon)
Coffee by Sam Ahmed / The Noun Project (icon)
Car by Laura Beggs from The Noun Project (icon)
MartiniGlass by Stanislav Levin / The Noun Project (icon)
ShoppingBag by Erin Standley from The Noun Project
Dumbbell by Ola Möller from The Noun Project
MortarBoard by Paul Souders from The Noun Project
Anchor designed by Jeremy Elder / The Noun Project (icon)
Airplane designed by misirlou / The Noun Project (icon)
PikeandRoseGroundbreaking by Maryland GovPics / Flickr (image)
SantanaRow by Bruno Pinheiro / Flickr (image)
TheGroveinLosAngeles,fromabove,no.12052203 by Eric E. Johnson / Flickr (image)
TheMcMansion by Dean Terry / Flickr (image)
ThumbsUp designed by Alv Jørgen Bovolden / The Noun Project (icon)
USOpenParkingLot by alex92287 / Flickr (image)
Caulkingwindow by kimkole / iStock.com (image)
CookieCutterHouses by Ann Walsh / Flickr (image)
SantanaRow by Eric Fredericks / Flickr (image)
ReceptionBelldesigned by Catia Marsh Mallow / The Noun Project (icon)
Footprint designed by Jule Steffen & Matthias Schmidt / The Noun Project (icon)
City designed by Nicholas Menghini / The Noun Project (icon)
Wireless designed by Edward Boatman / The Noun Project (icon)
TheAmericanaatBrand by Chris Yarzab / Flickr (image)
IMAGE SOURCES

80. Axiometrics | axiometrics.com/company/pressreleases/apartment-
occupancy-hits-95
Survey by Apartments.com | realestateeconomywatch.com/2014/01/nearly-
half-of-all-renters-are-ex-homeowners/
Survey by Trulia | magazine.good.is/articles/most-americans-want-a-
walkable-neighborhood-not-a-big-house
National Multi Housing Council (NMHC) | finance.yahoo.com/news/
landmark-resident-survey-identifies-top-173400335.html
National Association of Realtors | realtor.org/articles/how-millennials-move-
the-car-less-trends
U.S. Census Bureau | tampabay.com/news/business/realestate/pricey-posh-
tiny-apartments-rule-tampa-bays-big-money-rental-boom/2189650
Urban Land Magazine | urbanland.uli.org/infrastructure-transit/housing-
america-s-graying-population/
Harvard Joint Center for Housing Studies | harvard-cga.maps.arcgis.com/
apps/StorytellingTextLegend/index.html?
appid=7e85ff667f804fe0aaf10a5a27db9c39
Hart Research | macfound.org/media/files/
How_Housing_Matters_2014_FINAL_REPORT.pdf
Rent Comparison (San Jose, CA) | forrent.com/apartment-community-
profile/1000059389.php
Rent Comparison (Alpharetta, GA) | apartmentguide.com/apartments/
Georgia/Alpharetta/The-Lex/259/
Study by Brookings Institution | nytimes.com/2012/05/27/opinion/sunday/
now-coveted-a-walkable-convenient-place.html?_r=1&
U.S. Census Bureau | census.gov/construction/chars/pdf/
mfu_medavgsqft.pdf
U.S. Commerce Department | bloomberg.com/news/2014-07-10/renters-
trading-size-for-frills-fuel-u-s-apartment-boom.html
http://www.nytimes.com/2014/08/30/upshot/is-owning-overrated-the-rental-
economy-rises.html?_r=0
DATA SOURCES