Here in Portland, it’s pretty obvious to see that there is a boom in multi-family development, but it’s taking place all over the country. There’s been a huge shift in consumer lifestyle which has led to massive changes in the multi-family arena. In this post, we’ll explore three key factors which have contributed to this change.

Urban Lifestyle

The days of moving to suburbia and getting a sprawling house with a white picket fence seem to be dwindling. Urban centers are being revitalized, cities are becoming safer, and transportation is getting upgraded. Two huge populations  – millennials and baby boomers – are big influencers in this area.

Millennials seek an urban lifestyle with conveniences and amenities within walking or public transportation distance. As a whole, seniors are seeking higher quality housing and retirement communities, and no longer desire enormous suburban houses. Both populations are willing to trade in square footage to be closer to revitalized urban centers.

Amenities

The key buzzword in the multifamily market right now is amenitization. Consumers are seeking more and more amenities and on-site conveniences than ever before. In fact, in some areas, developers will delay the official openings of their properties in order to install even more amenities. Even with less square footage in the apartments themselves, residents are spending more time within buildings that offer amenities such as social areas.

Another unique influence on the push for amenities are single parent families. Buildings that offer daycare, babysitting, healthy dining and even homework assistance are on the rise, as more and more single-parent families make their way into cities for a more convenient lifestyle.

Economics

The economic crisis a decade ago slowed down housing construction, thereby creating a huge vacuum that remains to be filled. That, combined with today’s consistent demand, could require the construction of 1.65 million units per year!

Another influence is the new tax law. Home ownership may become less attractive due to the elimination of certain deductions. So, with cheaper financing, investors are betting on higher multi-family demand.

Are you interested in learning more about the Portland multi-family housing market? I’d love to speak with you about it. Just contact me!