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

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

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.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Floor-to-ceiling rotating gates at Fairmount subway station in Philadelphia, Pennsylvania.

Crime Continues to Drop on Philly, San Francisco Transit Systems

SEPTA and BART both saw significant declines in violent crime in the first quarter of 2025.

April 28 - Mass Transit

South LA Wetlands Park in Los Angeles, California.

How South LA Green Spaces Power Community Health and Hope

Green spaces like South L.A. Wetlands Park are helping South Los Angeles residents promote healthy lifestyles, build community, and advocate for improvements that reflect local needs in historically underserved neighborhoods.

April 28 - ABC 7 Eyewitness News

Intersection in downtown Sacramento, California with neoclassical building with columns on left.

Sacramento Plans ‘Quick-Build’ Road Safety Projects

The city wants to accelerate small-scale safety improvements that use low-cost equipment to make an impact at dangerous intersections.

April 28 - The Sacramento Bee