The long-term outlook for the U.S. multifamily market is strong, according to CBRE Economic Advisors’ recent forecast, with a predicted demand for an additional two million units over the next decade.[i] One of the key indicators driving this demand is the millennial generation. Based on data from the U.S. Census, millennials have surpassed baby boomers as the nation’s largest adult generation. There are now 72.1 million millennials, which is defined as anyone born between 1981 and 1996 (ages 24 to 39 in 2020). [ii]

According to results from a national survey conducted by Allegion, a global home security company, 72 percent of millennials live in apartment buildings, and 75 percent plan to stay six months or longer.[iii] With three-quarters of the millennial population living in apartments, multifamily property owners and managers who understand this cohort and how best to retain them as residents will be well-positioned for success.


Millennials prefer the suburbs

Demand Institute’s survey of more than 1,000 millennial households revealed that over a five-year period, they spent $600 billion on rent, more on a per-household basis than any other generation.[iv] In that same survey, millennials reported that when they do move to their next apartment, it’s because they’re looking for more space. And where they are finding that space is the suburbs, which runs counter to millennials’ reputation as the quintessential urban dweller.

Nearly half of the millennials surveyed wanted a suburban location for their next rental, with all the attendant benefits: more space and safer streets. Communities that can offer the convenience and walkability of urban living coupled with the larger units will thrive in the next decade. According to research by the Pew Research Center, more than half of millennials are not married, and those who are got married later in life. Women millennials are also less likely than previous generations to have given birth at this stage in their life. Three in ten millennials live with a spouse and child compared to 40 percent of GenXers (individuals born between 1965 and 1980) at a comparable age.[v] So while they are delaying marriage and families, millennials still plan to be married or have kids in the next five years.[vi] This subgroup of “maturing” millennials are often “auditioning” the suburbs before raising a family.  This cohort, in particular, expects amenity-rich communities but at more affordable rents.[vii]


Luxury apartment living

The National Multifamily Housing Council reports that in addition to the larger, more affordable space of a suburban development, millennials also want top notch-amenities. Millennials rank the following as the most desirable amenities: fitness centers, kitchen islands, a resident portal, outdoor recreation facilities, and community Wi-Fi.[viii] Beyond those amenities, there’s interest in security and concierge services, in-unit laundry, and conveniences such as dog parks, electric car charging stations, and recycling services. [ix]

Smart apartment features are high on their list as well. With 57 percent of millennials using delivery services, and 63 receiving one or two packages per week, upgraded package centers are a must for multifamily communities. [x] Automated package locker systems are gaining popularity because they help mitigate package clutter and increase security for resident delivery. Ideally, millennials want an automated locker system that’s centrally located, easy to retrieve and with anytime access. According to data from Package Concierge, 83 percent of residents would prefer 24/7 access to their lockers.[xi]


What does this mean for the multifamily investor?

The forecast demand for two million additional units over the next decade, creates a dynamic investment environment for the multifamily sector and new opportunities for investors, buyers, and developers. As the largest living generation, millennials know what they want, and the multifamily housing market is responding. Millennials are motivating multifamily operators to provide the amenities, technology, and service that they demand.

Retaining a property management firm with a keen understanding of marketing and leasing to the millennial generation is essential for investors and buyers who want to capitalize on this growing market. Lloyd Jones Multifamily Management, a division of Lloyd Jones LLC, has 5,500 multifamily units under management in key markets through Florida, Texas, and the Southeast. To learn more about our services, visit













Throughout recent history, a mark of American status was the spacious home with the plush yard and picket fence. Young couples and growing families strove for this style of living to exemplify their status and enjoy what may be perceived as the American dream.Today, the home with the picket fence is no longer a goal for many. Most millenials and the new era of young families are opting for flexibility, mobility, maintenance-free lifestyle which can be found in multifamily. As mentioned in last week’s blog, We are living in a rental economy, 82% of renters affirmed that renting is the affordable option, and this trend is only growing.

Earlier this year, the WSJ confirmed in their article A Growing Problem in Real Estate: Too Many Too Big Houses that “Large, high-end homes across the Sunbelt are sitting on the market, enduring deep price cuts to sell.” The same homes that were once sought after as a status symbol are no longer regarded as such. The article goes on to state that “Now, many boomers are discovering that these large, high-maintenance houses no longer fit their needs as they grow older, but younger people aren’t buying them.”

According to Fannie Mae’s report, The Coming Exodus of Older Homeowners, boomers’ homeownership is projected to decrease by nearly 30 million over the next couple of decades (see chart below). Across all demographics, we are witnessing a shift toward more practical living, multifamily

A few weeks ago the WSJ reported that “U.S. homeownership rate fell for a second straight quarter, as high prices and limited starter-home inventory are steering more households toward renting.”  This coupled with the fact that home prices rose over the last 2 decades while wages have remained stagnant (see chart below) confirms that we are living in a rental economy.

Although the economics of wages, home prices, and supply drive many hopeful homeowners into renting, others prefer renting for mobile flexibility, lack of debt, and access to amenities and advantages that they may not otherwise have in a single family home.

In Freddie Mac’s recent survey of renters and homeowners, 82% of renters stated that renting is more affordable for them (see chart below). This percentage has steadily increased from 69% in January 2016, further affirming the idea that the rental economy is here to stay.

A recent Miami Herald article, written by Ricardo Mor, pointed out that there are 83.1 million Millennials and a whopping 30 percent of them live at home with their families. This is an incredible statistic, especially for investors considering investing in multifamily real estate.

These 18-to-34-year-olds are historically our apartment dwellers, taking their first steps toward independence. Instead of moving into their first home post college graduation, they are still living at home.
Do the math: that’s almost 25 million young people – potential apartment renters who haven’t entered the rental market yet. The pent-up demand is huge and increasing. New construction cannot keep up, but even then, it is far too expensive for the entry level worker or new college grad.

That’s exactly why Lloyd Jones Capital is acquiring existing apartment complexes and re-branding and improving them in order to accommodate this exploding demographic that represents one-quarter of our nation’s population.

Paying attention to these real estate trends will move you to diversify your portfolio investment with multifamily real estate. Our investment strategy of finding, purchasing and remodeling C Class rentals is a great way to secure modern apartments for millennials while still creating a significant return for our investors.

Christopher Finlay is Chairman/CEO of Lloyd Jones Capital, a private-equity real-estate firm that specializes in the multifamily sector. With 35 years of experience in the real estate industry, the firm acquires, manages and improves multifamily real estate on behalf of its institutional partners, private investors and its own principals. Headquartered in Miami, the firm has operations throughout Texas, Florida and the Southeast. For more information visit: