DALLAS-Even as the unemployment figure continues inching downward, one demographic isn't necessarily benefitting. Axiometrics Inc., in a recent newsletter, points out two things.
First, even with a slight dip in the unemployment rate (August figures from the Bureau of Labor Statistics reported 7.3% in unemployment), the unemployment rate for those 20-24 years of age isn't improving at the same rate as it is 25-34 years old.
And second, the higher unemployment among this demographic is the reason why younger renters are signing leases at class B and class C apartments.
The reason for this is because young people seeking out a first-time job may have to make do with lower-paying positions. As such, the lower class multifamily properties make sense, especially in markets that are known for their higher costs of living.
Axiometrics forecasts that owners and managers of class B and class C apartments will continue experiencing revenue growth until such time that higher-paying positions open in the jobs market. This will permit younger renters to rent class A apartments.
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