Impact of Gen Z on the Multifamily Housing Industry. Watch out, there’s a new generation defining the future of the multifamily industry. While millennials make up 56 percent of the rental market, Gen Z comprises 74 million people, making it equal in size to millennials and baby boomers. Even though they may be young, they have money to spend. They contribute $44 billion to the U.S. economy and it’s only a matter of time before they head into the rental market.Learn more about Gen Z's Impact
The average rent rose 3.1 percent to $1,310 year-over-year through December – the lowest rate in the past eight quarters. Employment growth was sightly over the national average at 1.9 percent. Education and health services lead with 14,900 new jobs followed by the leisure and hospitality sector which gained 12,600 jobs in 2019. Rounding out the top three was the professional and business services sector which added 7,900 jobs. Atlanta is the fourth fastest-growing market for tech jobs in the U.S., so this sector is expected to continue to accelerate.
The local economy continues to diversify and draw new employers and skilled workers to the area generating a steady rental demand last year and into this year. This market was one of the top performers in 2019. The housing demand remained on a high note, with rents up 3.8 percent for the year.
Amidst the current market situation, there is an exceptional outlook driving competitive pricing and shifting the mindset of investors for the Orlando market. The interest for Orlando has grown so much recently that the average cap rate now equals those posted in the Southeast Florida markets. Before, investors saw higher yields for Orlando assets as obligatory to balance the risks and lower the long-term rent growth associated with the market. However, recent performance of the market has erased that trend and investors have began to view the multifamily market’s long-run trends potentially slightly stronger than other metros.