New Demographic Trends Behind the Multi-Family Housing Boom
Multi-family housing has been a bright spot in the overall gloomy housing market, with renters flocking to apartment buildings at ever-increasing rates. Formica Corporation recently partnered with Hanley Wood Marketing to gain more insight on who is driving this growth and what it means for laminate countertops. Spoiler — the future looks good.
Citing the “The State of the Nation’s Housing,” from Harvard’s Joint Center for Housing Studies, the number of renter households climbed by one million last year, which is the largest annual increase since the 1980s. While the growth was spurred by a decline in homeownership rates across most age groups, the report identified a number of demographic trends making an impact:
Growth between 2006 and 2011 was strongly driven by 25- to 34-year-olds, who accounted for 645,000 new renting households in that period (compared with a net loss of 328,000 households from 2001 to 2006).
Though minorities accounted for only 30 percent of U.S. households in 2011, they contributed 59 percent of the increase in the number of renters between 2004 and 2011, with African Americans accounting for 24 percent, Hispanics 17 percent, and Asians and other groups 18 percent.
An increasing number of married couples also are bypassing home ownership for rental housing. Although they made up only 36 percent of renters in 2011, according to the report, they accounted for 50 percent of the growth in renter households over the last five years.
According to a report from research firm The Freedonia Group, the new demographics driving the rental boom will create a boon for countertop manufacturers. Multi-family housing market demand for countertops is expected to rise 3.1 percent each year through 2015 as new properties are being developed and remodeled. The report also states most property managers opt for durable materials such as laminates because they are inexpensive and easy to clean and maintain.
Hanley Wood Marketing’s full article is available in our multi-family housing page at formica.com. While you’re there, check out our article on the current kitchen design trends in the multi-family market, where design appeal and functionality are a must for attracting renters.