There’s a big shift happening in Rochester and around the country. This is a demographic shift. This is a lifestyle shift. This is a shift of expectations when it comes to housing.
Here is why we need more apartments, who is likely filling the units and why downtown is an attractive option.
There are more households without children. In 2000 there were 102,033 homes without kids in Monroe County. In 2014, there were 121,016. That’s a 19 percent increase of childless households. If you don’t have children, you can get by with less space. You don’t have to live in a suburb to access good schools. You may have more disposable income.
The population is aging. Between 2000 and 2014, the median age in Monroe County went from 36.1 to 39 years old. Between 2000 and 2014, the share of the population claimed by people over 65 went from 13 percent to 15.5 percent. Seniors often like to downsize. They often sell their homes for an easier lifestyle. During this time period, the number of seniors in childless homes grew by 8,000. But the number of childless households went up by nearly 20,000. Who is making up the gap?
The Millennials are a force. The percentage of the population between 20 and 34 years old went from 19.8 percent in 2000 to 21.3 percent in 2014. That’s an additional 15,000 young people in Monroe County. Data shows they’re trending toward city living. Although they can afford houses in many cases, they prefer to rent.
There are more people not married and living alone. In 2000, 82,042 people, or 11.5 percent of the population, lived alone. In 2014, 99,959 people, or 13.3 percent lived by themselves. On the marriage front, in 2013, 44.2 percent of the population in Monroe County was married. That’s down from 51.3 percent in 2000. If you live alone, you’re less likely to want or need a house.
Home ownership rate is falling. All of the above demographic factors have led to a lower home ownership rate in Monroe County. In 2000, 70 percent of households were owner-occupied. In 2014, 64 percent of households were owner-occupied.
Good apartments in demand: The 2014 Census shows there is a 7.7 rental vacancy rate. But where are these vacant units? I suspect landlords of lower-quality apartments and apartments in less desirable and convenient areas are suffering. Rents are on the rise in Rochester. Downtown’s rental market shows a vacancy rate of 3 percent, which is considered a very healthy market.
But downtown rents are so expensive! Newer downtown units are starting at $1,000 and up. But that’s comparable to some newer suburban apartment complexes. Downtown living is easier for those who will be closer to work and entertainment. That saves time otherwise spent in a car and money on gas. The units coming online downtown are unique and special. You can’t find the views or the ambiance anywhere else.
But a house is an investment! Maybe. Studies show people think their houses appreciate far more than they really do. Some economists think you’re better off putting the money into stocks. Houses also have big upfront costs. The New York Times calculator shows if you buy a $125,000 house with a 20 percent down payment, and spend only $2,000 the first year on fixing the place up, you’re better off renting an apartment that’s $900. This doesn’t include the cost of furniture and ongoing maintenance and home projects. You’re certainly not going to buy a house for that price downtown, in the East End or Park Ave., the most walkable neighborhoods in Rochester. Houses in good shape for that price in Swillburg or South Wedge go very quickly. The bottom line is renting can be a financially attractive option for those wanting a certain lifestyle.
There you have it. All of these things taken together are why we’re seeing more apartment complexes going up in the Rochester area, particularly downtown.
Links of the Day:
- New York’s teacher ranks continue to plummet.
- Master plan aired by Senecas for Falls development: convention center & entertainment complex.
- In Syracuse it’s easier for addicts to get heroin than medical treatment.
- The radical plan to destroy time zones.
- Travel writer shares account of being onboard Anthem of the Seas during storm.