The Millennial Transformation of the D.C. Real Estate Market [Podcast]
November 19, 2014
In this podcast, join SC&H Group Real Estate expert Ross Litkenhous, a Principal within our State & Local Tax practice, and John Lawler, Marketing Research and Pricing Manager at Washington D.C. real estate developer Kettler, to gain insights into key multi-family real estate trends in the Washington D.C. metro area that are being driven by the Millennial generation.
According to most researchers, Millennials are individuals who are currently between the ages of 18 and 34. This unique demographic makes up approximately 16 percent of the Washington D.C. metro population, with the majority living inside the beltway. Recent studies also show that 54 percent of Millennials are renters, many of whom are disillusioned with the idea of owning a home.
One factor driving this trend is crushing debt from college and graduate school. As a result, Millennials are also enjoying the financial flexibility of renting, while also embracing a lifestyle that marries career growth with social opportunities.
Accordingly, developers are focusing on providing unique multi-family products that include social epicenters, and offer amenities such as virtual golf, fire pits, bocce ball courts, and Twitter boards to post new trends.
This unique generation is transforming the multi-family market in the Washington, D.C. region. One result may be a faster than expected absorption of the current surplus of rental units — especially in mixed-use developments with Metro access — while at the same time resulting in a decrease in demand for condominiums and homes in outer suburban regions.