Pressures contributing to this shift
Some of the key factors contributing to this shift in the age of the renter are housing marketing uncertainty, elevated interest rates, and lifestyle preferences among others. Home ownership is expensive up front but generally promises a long-term financial reward. However, choosing to rent can be more strategic in certain situations. There is not a one size fits all solution as every renter and community are unique.
Balancing the upfront down payments, property taxes, and ongoing maintenance costs of home ownership versus increasing rents and forgoing future financial gains can be tricky as this scale fluctuates from county to county and market to market. For example, in Collier County, FL (Naples), home ownership costs command 79% of living wages vs. 127% for rent. This situation favors the buyer, making renting less desirable. On the flip side, counties like Alameda County, CA (Oakland) require 48% of wages to rent vs 87% for home ownership.
Some of the key drivers of the home ownership uncertainty that is driving up the average age of the renter are:
- High Home Prices: Home prices have been rising steadily, making it difficult for younger people and families to afford to buy homes. This forces many to continue renting for longer periods.
- Mortgage Rates: Higher mortgage rates have made home loans more expensive, deterring potential buyers from purchasing homes. This is particularly challenging for younger buyers who may not have substantial savings or high incomes.
- Economic Uncertainty: Economic instability, including concerns about job security and inflation, makes people hesitant to make long-term financial commitments like buying a home. Older adults, who might have been homeowners in the past, are now opting to rent due to these concerns.
- Affordability Issues: The overall affordability crisis in the housing market means that even those who might have considered buying are finding it more practical to rent. This includes older adults who might be downsizing or those who have sold their homes but are not ready to buy again due to market conditions.
- Policy Changes: Rapid and unpredictable policy changes can create an environment of uncertainty, affecting both the housing market and individual financial decisions. This can lead to more people, including older adults, choosing to rent rather than buy.
While these concerns may hinder home ownership, they present a great opportunity for multifamily property owners and developers to capture a new customer segment and provide them with the flipside benefits of a flexible living renter experience.
Key considerations for multifamily properties when catering to a new, older, renter
Convenient and flexible living:
Flexible and convenient living is a significant benefit for aging renters and renters with children. This lifestyle is crucial for these age groups as it allows them to enjoy their independence without the burdens of homeownership, such as repairs and yard work. Multifamily property owners can enhance this benefit by providing secure, hassle-free access for renters and their guests and care takers.
Access control products, like the Schlage XE360 and Zentra proptech solution, complement this convenient lifestyle by offering advanced mobile-enabled smart security and seamless access management. These technologies provide peace of mind and ease of use, ensuring that older renters can navigate their living spaces safely and effortlessly.
Community and social opportunities for older renters:
According to a 2024 study by AARP, 74 percent of seniors reported in-person socialization as being key to their happiness, while others reported hobbies and regular exercise as key factors. Despite the advantages of social activities, 22% of seniors ages 50+ reported socializing less than once per week.
Social activities and community spaces are vital for older renters, providing opportunities for connection, engagement, and a sense of belonging. These spaces allow older adults to participate in group activities, form friendships, and combat feelings of loneliness and isolation. Access control systems play a crucial role in maintaining the security and accessibility of these community spaces.
Common area security is a concern for property owners and residents alike, especially as residences feature more community-centric amenities like bike storage, maker spaces, gyms, storage spaces and pet-friendly areas. Having audit trails showing who accessed community spaces and when can help deter theft and vandalism. They can also show which areas are more highly accessed, providing data that can reveal what spaces are more popular with residents, or which ones may require more upkeep.
For instance, access control products, such as the Schlage Control Mobile Enabled Smart Lock and Zentra proptech solution, offer advanced security features that ensure only authorized individuals can enter these areas. These systems can be programmed to grant access to residents, staff, and visitors at specific times, enhancing both security and convenience. By using key cards, fobs, or mobile apps, older renters can easily access community spaces without the hassle of traditional keys. This not only provides peace of mind but also encourages more frequent use of these spaces, fostering a vibrant and connected community.
Increased need for security and convenience among older renters and families with children:
Quality security is paramount for renters with children and older renters who may be more vulnerable to criminal activity. High-quality smart locks and access control solutions provide an essential layer of security that help multifamily property owners and developers address these concerns effectively.
For renters with children, smart locks eliminate the risks associated with lost or duplicated keys. Parents can control and monitor access to their homes remotely, ensuring that only authorized guests can enter. This is particularly important for families who may have babysitters, tutors, or other service providers coming and going while children are at home. The ability to grant temporary access and receive notifications about who enters and exits the home enhances both security and peace of mind.
Older renters, who may be more susceptible to being victims of criminal activity, benefit significantly from the advanced security features of smart locks and access control systems. These technologies provide a robust defense against unauthorized entry, reducing the risk of break-ins. Additionally, the convenience of keyless entry is a major advantage for older adults, who might struggle with traditional keys. With a proptech access control solution in place, they can use mobile credentials or fobs to access their homes and community spaces easily, ensuring they feel safe and secure at all times.
Importance of child-friendly designs in door hardware for families:
Child-friendly door hardware is crucial for ensuring the safety and convenience of families living in multifamily buildings. These designs often include features such as lever handles that are easier for children to operate than knobs, pinch-free hinges to prevent injuries, and locks that can be easily secured by parents but are difficult for young children to tamper with.
For families, especially those with young children, safety is a top priority. Child-friendly door hardware helps prevent accidents and injuries, providing peace of mind for parents. Additionally, these designs contribute to a more accessible and user-friendly environment for all family members, including those with limited mobility.
In multifamily buildings, where shared spaces and high traffic are common, it's essential to have durable and secure door hardware that can withstand frequent use. Child-friendly designs not only enhance safety but also ensure that doors are easy to use for everyone, promoting a more inclusive living environment.
Importance of ADA-friendly door hardware and access control for older renters:
Multifamily property owners should prioritize ADA-friendly door hardware and access control to ensure their buildings are accessible and safe for older renters. ADA compliance not only meets legal requirements but also enhances the quality of life for residents by providing ease of access and promoting independence.
For older renters, replacing doorknobs with easy-to-use levers and thumb turns, as well as utilizing automatic door openers can significantly reduce the physical effort required to open and close doors. These features are essential for individuals with limited mobility or strength, making it easier for them to navigate their living spaces independently.
Conclusion
The aging renter segment is growing, with more older adults choosing to rent due to factors like affordability and lifestyle preferences. Multifamily property owners and developers need to be aware of this trend and adapt their properties to attract and retain these valuable residents.
To chat with a multifamily consultant about solutions that create environments that are friendly to an aging renter demographic and those with children, please submit your information on this form and someone will be in touch with you.
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