Demographic Shifts That Will Shape Multifamily Demand This Year

The demand for multifamily rental housing is closely tied to how people live, work, and move. In 2026, several key demographic trends will influence where renters choose to live and what kind of properties are in demand. These changes matter for investors, developers, and anyone interested in the future of multifamily real estate. 

Young Adults Driving Rental Demand   

Younger generations, especially Millennials and Gen Z, continue to shape the rental market in important ways. Many of these adults are delaying homeownership because of high home prices and elevated mortgage costs. Nearly half of Americans say buying a home feels unrealistic due to costs and financial constraints, and younger adults make up a large portion of this group. This means more people stay in the rental market longer. 

Renters under 35 tend to prioritize flexibility, digital connectivity, and access to modern amenities. Many expect features like high‑speed internet, mobile rent payments, and shared social or work spaces in their apartment communities. These preferences influence developers to design properties that match these needs.  

These trends show that younger renters will keep fueling multifamily demand because they often cannot or choose not to buy homes right now. 

Household Growth and Renter Population Trends   

The number of renter households grew significantly in recent years, outpacing historical averages. In 2023 and 2024, the U.S. saw a large increase in new renter households, signaling strong ongoing demand for rental homes. This growth results from high costs of homeownership, student debt, and changing lifestyle choices.  

Looking ahead 10 years, projections show continued growth in renter households, though at a slower pace than recent years. The expected increase in renters provides a foundation for steady multifamily demand while supply patterns evolve.  

Migration Patterns and Regional Shifts   

People are moving for jobs, lifestyle, and affordability. Certain regions of the country continue to attract new residents because they offer lower costs, job opportunities, and quality of life. These shifts help shape where rental demand will be strongest. States in the Sun Belt and many secondary cities in the Midwest and Southeast are seeing rising renter populations. These areas may benefit from population growth and relative affordability compared with expensive coastal cities. 

Migration trends matter because areas gaining residents often see faster rent growth and stronger multifamily occupancy. Investors pay attention to where people are moving so they can target markets with reliable future demand. 

Remote Work and Lifestyle Preferences   

Remote and hybrid work trends, while not purely a demographic factor, interact with where people choose to live. As some workers are no longer tied to a physical office, they have more flexibility in picking rental locations. Some choose urban centers for lifestyle and convenience, while others move to suburban or smaller markets for affordability and space. These choices influence multifamily demand across different markets, and properties with features that support remote work preferences perform well. 

Senior Renters and Aging Population Trends   

The country’s population is also aging. While aging can mean seniors moving into assisted living or senior communities, many older adults continue renting for flexibility and convenience. In several regions, the share of renters aged 65 and older has risen significantly over the past decade. These changes mean that some multifamily properties may find strong demand in units that cater to older adults who want accessible, maintenance‑free living without the full expense of homeownership.  

Even though seniors are a smaller share of the overall renter population compared with younger adults, their increasing numbers suggest that well‑positioned multifamily communities can benefit from thoughtful design and services that appeal to this demographic group. 

Homeownership Challenges and Rental Preferences   

Many younger adults expect to buy homes eventually, but affordability barriers and financial constraints keep them renting longer. Nearly half of Americans report they cannot afford to buy a home, and many express that owning is not realistic given current market conditions. These economic and demographic realities help keep multifamily rental demand strong as a large portion of the population either delays buying or chooses flexibility over ownership.  

What This Means for Multifamily Investors   

These demographic shifts create several implications for multifamily investing. Markets with strong young adult populations, steady renter growth, and positive migration trends are especially appealing. Investors who understand these patterns can better align their strategies to long‑term demand. 

Investing in areas with job growth and demographic momentum can help properties maintain occupancy and rent growth over time. Developers and operators that adapt amenities and rental features to match renter preferences, such as digital connectivity, co‑working spaces, and lifestyle‑oriented communities, may gain a competitive advantage. 

Demographic change will continue to shape multifamily demand in 2026 and beyond. Young adults renting longer, migration toward affordable markets, and the changing preferences of different age groups all play a role. These patterns reinforce why multifamily housing remains a core part of many real estate investment strategies. Understanding and anticipating how people are moving and living helps investors and operators make smarter decisions. 

By watching demographic trends and responding with thoughtful property positioning, multifamily investors can continue building strong portfolios that meet renter needs and perform well over time.