Millennials Prefer Renting: Demand for Multi-Family Options Grows

Millennials need housing they can afford, and that means apartments instead of houses.

2 minute read

July 9, 2019, 7:00 AM PDT

By James Brasuell @CasualBrasuell


Illinois Multi-Family

Sharon Wildie / Shutterstock

"Demand for rental apartments in and near cities across America is soaring, just when most thought it wouldn’t be," according to an article by Diana Olick. "The expectation was that rental demand would fall as millennials aged into their home buying years."

"Apartment demand in the second quarter of 2019 spiked 11% from a year ago. That, in turn, pushed rents up an average 3% nationally to $1,390 per month, according to RealPage, a real estate software and analytics company," writes Olick.

The article also cites the results of a recent survey by Freddie Mac, which finds an overwhelming preference for renting as the more affordable option than owning a home. In that survey 82 percent of MIllennials said renting is more affordable than buying.

The narrative that Millennials are still driving demand for multi-family housing is a more nuanced take than the one that might the rounds at the beginning of July, which said that the largest demographic cohort in the country were fleeing cities for the suburbs in search of cheaper homes. Articles in the Wall Street Journal [paywall] and Fox Business made that case.

For more evidence of the preference of many Millennials for more urban living arrangements, see also the Foot Traffic Ahead report, released in June. Even the Wall Street Journal was singing a different tune [paywall] in March, when the story was about houses being too large for the market.

Monday, July 8, 2019 in CNBC

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Row of older brick houses in Detroit with front porches and front lawns.

Detroit Says Problems With Property Tax Assessments are Fixed. Advocates Disagree.

With higher-valued properties under assessed and lower-valued properties over assessed, advocates say there's still a problem with Detroit's property tax system.

15 minutes ago - Shelterforce Magazine

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

July 4 - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

July 4 - Streetsblog USA