A significant surprise in the market has been the general resiliency of the Class A urban apartment. While new construction in some urban markets has had to deal with concessions, the asset class has held up well as this cycle matures, partially because of the migration of empty-nesters into the urban core.
But the story of the couple selling their home in the suburbs and moving back into the city to live out their golden years isn’t always the case, as NAA's Les Shaver reports in this story from the floor of the NMHC Apartment Strategies Outlook Conference in San Diego:
From 1990 to 2015, [divorces among those age] 50-plus increased 100 percent, according to Pew Research Center. In all, boomers account for approximately 260,000 divorces a year.
“Single-person households have the highest propensity to rent in five-plus [unit] multifamily properties, which is why, then, I feel that many of these newly single boomer households from divorce are ending up renting apartments,” [said] Jay Lybik, Vice President, Research Services, at Institutional Property Advisors (IPA) at NMHC’s Apartment Strategies Outlook Conference in San Diego.
