Published by FOX Business | March 3, 2024
Being a 'forever renter' is attractive to millennials and empty nesters, says Post Brothers CEO
As economic woes continue to pummel the housing industry, one real estate developer is finding opportunities within a new market – the “forever renters.”
Post Brothers CEO and co-founder Michael Pestronk joined “Varney & Co.” Friday to discuss the real estate opportunity brewing in urban areas as some Americans are opting to rent instead of buying a home.
“The biggest issue, especially in large established metro areas, is a lack of product. There’s no such thing as a starter home in large [Metropolitan Statistical Areas] anymore. There’s no land available to build housing within commutable distances of jobs,” he explained.
Pestronk argued that “bigger” and “better” apartments are the ideal starter homes for those who live in big cities.
The real estate expert said that a portion of “forever renters” are of the “higher-end” demographic and have an eye for apartments with large scale rooms, sophisticated aesthetics and kid-friendly amenities.
“We have a mid-Atlantic focused portfolio. Our average renter 10 years ago was 29. Today it’s 33. But we also have way more renters of the 35 to 45, making well over $150,000 than we used to have,” he said.
“The biggest part of this story is really that the millennial generation has come of an age and an income level, where in previous generations they would have been moving to the suburbs and buying houses, and they’re not,” he said.
