According to a study conducted by Rent.com, the multifamily industry might want to begin preparing itself for a boost from a whole new demographic: the Millennials.

Generation Y, also known as “the Millennials”, has finally had enough time out of college and in the job market to have built up enough fiscal responsibility to afford to move out on their own.

For most, their first stop on the path to independent living will be moving into a multifamily apartment community that is most likely set in one of the more popular urban areas that the Millennials already prefer to both work and socialize in.

To understand the mindset of the Millennial, you have to put yourself in their shoes. Many are simply not very interested in buying a home any time soon. Most have seen their parents and other loved ones struggle to maintain their own properties while, despite the additional effort, those homes depreciate in value.

Most Millennials know that, because of their financial position, they would have a hard time qualifying for a traditional home loan and instead are avoiding the home buying process all together. Their minds are set on renting.

Chief executive officer of Pangea Properties, Al Goldstein, told the Real Estate Journal, “Individuals who would have traditionally fallen under the ‘potential home buyer’ category are now making the shift toward renting instead,” he added, “Gen-Y is no longer making the five-year plan to purchase a home.”

As a matter of fact, a large portion of the Millennial community seems to be making plans to become lifelong renters. It seems that this younger crowd perceives the flexibility of renting to be the more realistic alternative to owning their own homes.

Ultimately, multifamily property owners should expect to be renting more units to a younger crowd. These types of renters will be occupying existing units for longer periods of time, translating into continued demand for the construction of new units for the foreseeable future.

How have today’s young adults affected your multifamily real estate market and growth? We’d love to hear from you.