Millennials and baby boomers are constantly adding to multifamily demand. Every month, there are 300,000 millennials turning 22 and another 300,000 turning 23. Plus, 10,000 baby boomers turn 65 every day. These growing demographics ensure that there is plenty of demand to sustain a healthy and profitable multifamily market far into the future, and it is continuing to fuel multifamily investment nationally.

“That demand will continue to make the multifamily market a profitable business,” Ella Shaw Neyland, President of Steadfast Apartment REIT III, tells GlobeSt.com. “There is a consistency in the demand for apartments. The way that people are living has changed so dramatically. It has created a real estate sector that has a predictable performance. As long as you have this many people looking for apartments, you will continue to keep occupancies high and the sustainability if the financial success of those apartments doing quite well for the long term.”

While the demand for apartments is only growing, some markets are seeing slowing rent growth—like in Los Angeles—and flat occupancy levels. Some of this is a supply issue, because there has been a burst of development activity in urban markets. The safest investment bet is to focus on the characteristics in an apartment complex that millennials want and the amenities that compliment their lifestyle.