I’ll never forget buying my first house. I’ve lived there for 20+ years. It was the first house I bought and I’m still there although considering moving on soon. Anyway, I was very excited when the deal closed and my wife and I got the keys and we walked around thinking about where we’d put things and how we’d decorate it.
It wasn’t my dream house, whatever that concept means, and it’s not fancy, but it’s been home and we’ve been comfortable in it. It was part of us obtaining a slice of the dream I guess, and of course the responsibility that goes with it.
However, for a younger generation coming of age now, home ownership seems less important. The so-called “millennial” generation seems to have other things on its mind. Many are struggling to find decent jobs that would support them buying a home. Requirements to qualify for a loan are tougher to meet for the most part. And many young people currently are saddled with big-time student-loan debt, making home ownership almost impossible while they’re paying off such high loans. I could say a lot about why a college education shouldn’t be that expensive, but I’ll avoid that rant right now!
A couple of young people I know told me that the houses they can afford are not attractive to them and located in neighborhoods they really don’t want to live in. Obviously L.A. where I live is very expensive but I’ve heard that from young folks in less costly areas as well. A lot of young people seem more inclined to some of the newer apartment/condo complexes that have amenities such as workout rooms and pools on the premises, maybe even coffee bars on the property or close by. It’s a different way of living and I can easily see the attraction.
The larger baby-boom generation is tending to move out of their bigger homes. They are getting older, their kids have grown up and moved out or will do so soon, so they are more inclined towards condos or apartments. Many older people are moving to assisted living facilities, or apartment complexes that cater to seniors, in many cases for similar reasons that younger people are attracted to complexes. Perhaps a bit more of a sense of community, of having amenities they don’t have to drive to, of not feeling so isolated in this increasingly transient society.
So for all these reasons, and more, the trend in housing construction is increasingly towards multi-family dwellings. There are numerous studies showing this trend and economists we’ve interviewed at RER are saying the same thing. While construction of single-family homes is likely to improve in 2015, the long-term trend shows a continuing growth in multi-family units.
For those of you in the equipment rental business, it should not be too hard to consider what type of equipment is likely to be used in multi-family construction. The ability to work in confined spaces, aerial units that can reach up several stories, equipment that can work inside on walls, floors and different kinds of maintenance. You know more about it than I do, so you don’t need me to tell you how to put an inventory together.
Just keep in mind this housing trend. And don’t just take it from me. Ask your contractor customers what they expect to be working on in the year ahead.
