Reversing the trend of consolidation from the previous year, occupied small asset multifamily inventory expanded in 2017, according to new data from the U.S. Census Bureau 2017 American Community Survey (ACS).

Small asset multifamily continues to support a broad range of Millennial workers, while those in Science, Technology, Engineering, Arts/Design and Math (STEAM) occupations are renting at a faster clip.

Young adult apartment renters earn as much as their older neighbors, with those living alone earning significantly higher income than the market average in downtown locations.

As apartments continue to support Millennial demand in a variety of ways, small asset multifamily is experiencing an appreciable uptick in young renters living alone across the rental market.

Small apartment properties present strong value at both ends of the property age spectrum, with the most recent and prewar properties outperforming market averages across unit size.

While small and large apartment buildings are specialized in terms of unit mix, inventory additions over time have been skewed toward larger units across both asset classes.

Compared to other rental properties, average rents in small asset multifamily vary less by property age, while rents for prewar buildings are going toe-to-toe with newer construction.

Contrary to popular perception, more millennials are driving to work. However, older renters lead in the rate of car adoption.

While public transportation usage is highest among apartment renters, recent data show a secular decline, keeping with the overall trend of changing commuter preferences and workplace environments. Driving to Work Lower Among Apartment Renters Reflecting the recent spike in car ownership rates and lower gas prices, driving to work has experienced a resurgence. Conversely, public transportation usage has witnessed alarming declines across major US cities, largely attributed to lower system upgrades. As shown below, commuting by private vehicles (primarily cars) was the dominant mode of transportation for working renters across all asset types. Between asset types, however, private vehicle rates varied from a high of an 87% share in suburban single-family rentals to a 64% share in downtown-oriented large apartment properties in 20161. Car ridership shares in small apartment properties, which are more dispersed along the downtown-suburban continuum, landed in an expected middle ground at 77%. Looking at the broader transportation landscape, as shown below, commuting rates by public transportation (including taxis, less than 1%) varied significantly from a share of only 4% in single-family rentals, to 12% in small Read the full article…

While still below long-term averages, vehicle ownership is increasing across apartment properties.