Designhaus pushing to meet apartment demands for Millennials

Millennials are taking the wheel for the U.S. housing economy, and the recession and student debt are the backseat drivers. Millennials are renting apartments and condos longer while delaying a home purchase, mostly due to the belief that renting is cheaper than owning a home. Apartment demand has increased 11% from a year ago, which has increased rent rates by 3%, putting the national average of rent per month around $1,390. Almost 82% of renters say that it’s still more affordable to rent rather than purchase a home, making it a good time for developers and their architects to design multi-family apartment living that is not only affordable but also in a location that speaks to Millennials’ core values of social engagement.

Despite the cost of rent increasing, there is still a willingness to pay for desired areas of living. Millennials fresh out of college are content to relocate in order to build their careers, improve social life, and they are willing to pay for the freedom of mobility if new opportunities arise. Some of this can also be attributed to the fact that there is less of an importance in marriage for Millennials, making them less likely to “settle down” in one place. The freedom of short lease opportunities allows Millennials to relocate more often when a new job opportunity or life change occurs.

Metro Detroit, however, is experiencing a shortage of rental options, and the desire to live there is steadily increasing. According to survey data from Stratton Research, growth in renter households has been on the rise but would experience an exponential spike if there was more rental housing available. An influx of available rental units would easily be occupied due to a demand for more rental options.

What Designhaus Architects consider when designing an apartment building for millennials:

The ideal Millennial home needs to be an adaptable space. The rise of side hustle life has made entrepreneurs a dime a dozen. This is created a need for more open spaces in apartments or lofts. Designhaus has been increasingly drafting open floor plans for apartment design where a typical designated kitchen, living room, dining room, and bedroom is no longer a cookie-cutter design. The idea is to create an extremely versatile space that renters can adapt to fit their work and personal life.

Renters want perks! A single apartment unit can be fitted with the latest and greatest in technology including free wi-fi access, remote-controlled appliances, and programmed heating and cooling. Architects like Designhaus also think on the grand scale to create amenities and building features that mimic a community that doesn’t come from a typical neighborhood of houses. This includes game rooms, public patios, gyms, and open office spaces. Apartment buildings that celebrate collaboration and community are highly sought by Millennial renters.

Lastly, renters are looking for a living space that offers peace of mind. Inhouse washers and dryers, fully furnished apartments, and dedicated parking make it that much easier for a Millennial renter to say yes to an apartment. As architects, Designhaus considers all possible aspects of what a consumer would want in today’s standards of living, in and outside of a building. To some renters, having just a covered carport is considered a luxury. Carports reduce the likelihood of debris falling on cars and does away with having to clear off snow in some states that experience harsh winters.

References:

Choi, Jung. “Millennial Homeownership: Why Is It So Low, and How Can We Increase It?.” Urban Institute. Urban Institute, July 2018. Web https://www.urban.org/sites/default/files/publication/98729/millennial_homeownership.pdf
Freddie Mac (2019 April) The Harris Poll Consumer Omnibus Results Custom Report Created By Freddie Mac
http://www.freddiemac.com/fmacresources/research/pdf/Freddie_Mac_Profile_of_Todays_Renter_and_Homeowner.pdf
Forget owning, renting is becoming the end game for many millennials and baby boomers (2018 May) https://www.washingtonpost.com/news/where-we-live/wp/2018/05/08/forget-owning-renting-is-becoming-the-end-game-for-many-millennials-and-baby-boomers/