Last year, the homeownership rate among millennials fell to 64.7 percent, the lowest it has been in nearly twenty years. Instead, millennials are choosing to rent in the areas where they work and play. With fewer young people swapping out leases for mortgages, the market for rental housing is experiencing unprecedented growth and change.

Renters enjoy the flexibility of a lease and the convenience of on-site amenities, but these perks must come at a price that fits within their budgets. Across the country, demand for accessible, luxury housing continues to grow. Multifamily developers are feeling the pressure to respond accordingly and outshine their competition.

Here are five recommendations for multifamily developers and property managers, as millennials’ influence in our industry expands:

1. Upgrade your interiors. Granite countertops, hardwood floors and stainless steel appliances were once considered hallmarks of upscale housing, and consequently, out of reach for many young renters. But in recent years, a modern, updated interior has become a necessity for a growing portion the rental population. Many millennials grew up in newly built or renovated homes with upscale finishes. Now they have moved out of their parents’ houses but still want a living space on par with what they are accustomed to, just without the true costs of homeownership.
   
   
2. Capitalize on amenities. Today’s renters enjoy the convenience of on-site amenities. On-site fitness centers, dog parks, swimming pools and lounge areas have become the norm, with many multifamily developers going above and beyond what is now expected. The next generation of apartment amenities includes perks like Nest thermostats, flat-screen televisions, gardening plots, fitness boot camps, volleyball courts and electric vehicle charging stations.
   
   
3. Create a sense of community. Young professionals are looking for more than a place to cook dinner and sleep; they want a sense of community. Community events such as pool parties, wine tastings and game screenings help bring residents together. A tight-knit, friendly community also benefits resident retention – people like to live where they know and trust their neighbors and staff.
   
   
4. Recognize that millennials are willing to pay the price, to some extent. With upgraded interiors and a wider selection of amenities comes higher rent, and residents understand that. The key is to keep rates at a price that isn’t unaffordable for most prospective renters. We have invested approximately $70 million over the past 18 months to upgrade our local apartment communities to better meet the demands of today’s renters. We did raise rental rates once renovations were complete, but not so dramatically that our properties were no longer competitive to young renters.
   
   
5. Make customer service a priority. The advent of online apartment reviews has driven us to make customer service an utmost priority. Prospective renters have likely read reviews of your property even before setting foot in your leasing office. Make yourself available to residents and listen to their grievances, and encourage satisfied residents to spread the word.