Multi-family Building Market, Meet The “Rentysomthings”
As we covered when economist Mark Eppli addressed NAIOP back in January, a series of economic factors (students coming back home and staying, peaking home ownership rates, former homeowners heading into rentals) are causing more renting among more age groups and income levels than we’ve seen before.
But one term describing part of this that’s new comes to us from Europe. They’re calling young professionals who earn too much to qualify for public housing but cannot afford to buy their own homes “rentysomethings”.
WSJ’s Doug Morrison writes:
While demand for European high-end property has held up in the face of economic turmoil, the lower end of the residential property market has not fared so well. But a handful of European institutional investors have spied opportunity amid the mid-market residential gloom. They are putting in place strategies to target suburban properties, far from the prime real estate of urban centers. And the U.K. rented sector is in their sights. In particular young professionals who earn too much to qualify for social housing but cannot afford to buy their own homes. The so-called “rentysomethings”.
Institutional investors had been conspicuous by their absence from the U.K. housing market of late but they sat up and took notice when Akelius, one of Sweden’s biggest property groups, announced plans to spend up to £1 billion in the market over the next five years.
- Don’t Pity the Rentennials: Why Not Owning a Home Is a Good Thing (leggotunglei808.wordpress.com)
- Mike Eppli’s Talk To NAIOP: Apartments Look Healthy In 2012 (commercialsource.com)
- Watch out for gazumping in the rental sector (confused.com)