In this closer look at Millennial renters, we find they are well-represented in small, low-amenity properties.
Developers and investors typically think of Millennial renters as determined to live in large, high-rise properties in urban cores. This new generation of renters prioritizes walkability and access to both in-building and local amenities. While this characterization may be true of many young renters, a closer look at the data shows they are an even more important source of demand for apartments in smaller properties.
Do Millennials Renters Live in Small Properties?
- Consistent with generally-held views regarding younger Americans’ housing preferences, Millennials (here defined as individuals currently between 18 and 34 years of age) tend to be renters. As of Q2 2016, the rentership rate for this cohort, including all living arrangements other than ownership, was 65.9 percent according to the U.S. Census Bureau.
- While Millennials account for 23 percent of the total population, they are a significantly larger share of the renter population. As shown above, Millennials accounted for 38 percent of the nearly 28 million renters in small properties in 2014. In comparison, their share of the large property renter population was lower, at 32 percent.
What do Millennial Renters Do?
- The basic activity profile of Millennial renters is similar across small and large apartment buildings. As shown above, nearly 85 percent of this age cohort work in salaried jobs. While some overlap, 25 percent worked and also attended college or university programs. Just 3 percent of Millennials living in apartments reported being self-employed in 2014.
How Much Do They Earn?
- The annual income of Millennial renters tracks fairly consistently with their level of educational attainment. More educated Millennials command higher salaries.
- Of course certain markets have higher-earners — we already saw that nearly 8 percent of Millennials in San Francisco earn more than $350,000 annually.
- There are also significant income differences across small and large properties at the same education level. Millennials with college degrees living in small buildings have lower incomes than their similarly-educated counterparts in larger properties.
- As shown above, Millennial renters in small asset buildings with college or associate degrees earned about $34,000 annually, compared to $43,000 earned by those living in large properties. This difference is even wider at higher levels of education.
Learn more on Alex Chatter.
We discuss where the majority of America’s small apartments are located and which market is growing the fastest. This data is the first-ever assessment of the geographic distribution of the small asset apartment inventory.
Upon 1st Anniversary, Arbor LoanExpress Attains New Efficiency & Client Service Milestones for Multifamily Borrowers & Brokers
UNIONDALE, NY (Feb. 14, 2017) – Arbor Realty Trust, Inc. (NYSE:ABR), a real estate investment trust and national direct lender specializing in loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets, has announced that its Arbor LoanExpress (ALEX) online agency loan origination and processing platform has reached three new efficiency and service milestones upon its one-year anniversary mark. In only one-year’s time, ALEX helped rapidly close 426 loans and process $2.3 billion in loan volume while ultimately saving nearly 24 hours per loan in processing time.
As a Top 10 Fannie Mae DUS® Multifamily Lender for the past decade and Freddie Mac’s Top Multifamily Small Balance Loan provider, efficiency and customer service are at the crux of Arbor’s business and success.
“Leveraging technology advances to deliver a faster and more efficient origination and processing experience is a primary focus and a core part of our business strategy, “ said Ivan Kaufman, Arbor’s President, Chairman and CEO. “In 12 short months, ALEX has delivered an easy, efficient and transparent financing environment for borrowers and brokers alike. We have only scratched the surface of what we intend to deliver to our clients in the near future.”
Within its first year of service to Arbor clients, ALEX has also provided the company with new avenues to business generation across the growing online real estate investment market. As part of this new level of reach within the multifamily market, ALEX’s news blog, ALEX Chatter, has provided multifamily investors exclusive insight and research into the small balance investment market through its partnership with Chandan Economics.
While ease, efficiency, 24/7 loan document management, mobile access and e-signature execution were some of the hallmarks of ALEX’s first year in business, the platform is now working on several additional initiatives. These include integrating ALEX with several significant broker client systems; incorporating a seniors housing financing component; and delivering continual process and experience enhancements that will increase loan processing time savings and ease of use.
For over 20 years, Uniondale, NY-based Arbor Realty Trust, Inc. (NYSE: ABR) has been helping multifamily and commercial real estate clients achieve their financial goals by focusing on growing long-term relationships and conducting business as not simply another real estate lender, but a partner. We value our clients to such an extent that we are more comfortable calling them partners, and their relationships with Arbor are the foundation of our business.
Founded by Chairman and CEO Ivan Kaufman, Arbor Realty Trust, Inc. is a real estate investment trust and direct lender specializing in loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets. Arbor is a Top 10 Fannie Mae DUS® Multifamily Lender by volume and a leading Fannie Mae Small Loan lender, a Freddie Mac Multifamily Seller/Servicer and the Top Freddie Mac Small Balance Loan Lender, a Fannie Mae and Freddie Mac Seniors Housing Lender, an FHA Multifamily Accelerated Processing (MAP)/LEAN Lender, a HUD-approved LIHTC Lender as well as a CMBS, Bridge, Mezzanine and Preferred Equity lender, consistently building on its reputation for service, quality and flexibility. With a current servicing portfolio of more than $12 billion, Arbor is a primary commercial loan servicer and special servicer rated by Standard & Poor’s with an Above Average rating. Arbor is also on the Standard & Poor’s Select Servicer List and is a primary commercial loan servicer and loan level special servicer rated by Fitch Ratings. Arbor Realty Trust is externally managed and advised by Arbor Commercial Mortgage, LLC.