Generation Y, also known as the Echo-Boomers, have been the Golden Egg worth sitting on for most apartment owners. A generation nearly the same size as the Baby Boomers is nearing a coming of age as the long-term supply of renters for apartment owners. Much talk exists about the timing of this wave but most agree it is definitely coming. If you are looking to your future investments and timing here are some great factors to consider.

Their Power:

This young group is believed to have $200 billion a year purchasing power. Although many are still not at the age to rent, statistics show that they are not afraid of the power they have as consumers.

As the most tech-savvy generation, they are armed with knowledge and information in a greater way than past generations of renters. This gives them an advantage and requires novel creativity in reaching and negotiating with this powerful group.

A population of 74.8 million people compared to the 78 million Baby Boomers, along with their comfort in living with their parents and friends, gives command to these young adults and necessitates change for product and pricing.

Below is a list of only some of the factors regarding the timing of this generation entering the rental market as well as ideas to give them want they need and want.

The Myths:

Echo Boomers are some of the best renters right now.

  • The youngest of this group are still just 10 years old.
  • Housing demand has been hitting higher education for a decade. We are in the beginning stages of Gen Y’s emergence as renters.
  • Only 4.2 Million (Of the 74.8 million) renters are prime renter age this year.
  • The economy can’t stop Gen Y.
  • They are statistically more susceptible to job loss and not gaining employment.
  • Most Echo-Boomers carry some credit debt, mainly student loans.
  • They are creating more roommate situations to reduce costs, aimed to battle the current economic down turn.

Impossible to build affordability for Echo-Boomers.

  • They want urban areas, where the action is. This is also where land ownership is more costly.
  • Apartment owners can combat cost with locations close to the core of the city, allowing for subsidies.
  • There is a need to re-evaluate floor plans, designs, price points and square footage. (i.e.: movable walls, open floor plans)

Gen Y doesn’t want to be sold.

  • They’ve don’t their homework and come armed with rental data.
  • Use of social networks sites for information.
  • Focus needs to be with fresh, attractive marketing, merchandising and advertising.
  • Parent often subsidize and should be included in marketing and leasing process.
  • Must earn their trust by delivering with follow through.

To learn more about the effect this generation has in the apartment industry please visit http://www.multifamilyexecutive.com/industry-news.asp?sectionID=529&articleID=782839

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Please contact me at Pete@ConsultPete.com or 925-719-3569 if I can be of assistance. To learn more about my background, visit Consult Pete. To learn more about my company strategy, visit Commercial MasterMinds