Will Two-Bedroom Apartment Homes Rise in Popularity?
Digested from Millennials Drive One-Bedroom Apartment Trend, But That Might Change
Axiometrics (11/16/15) Denton, Jay
Millennials are not getting married and having children as early in life as previous generations did. This is driving demand for one-bedroom apartment homes, as older millennials desire urban rental lifestyles without the burden of roommates.
But as millennials continue to age and begin to start families, they may reverse this trend with higher demand for two-bedroom apartments. Many are saddled with student and credit card debt that may prevent them from qualifying for a mortgage, and they will thus need to continue to rent as their families grow.
But rents for new two-bedroom apartments are rising more rapidly than they are for other rental categories, especially in metro areas such as Chicago and Atlanta. Such a premium could cause affordability issues down the road.