CURRENT MARKET TREND

The VIVE Development

As a recent Inc. article notes, “Projections show that roughly two-thirds of the global population will live in cities by 2050.”

Co-living, may be a trend that has some serious staying power as the country continues to battle an affordable housing shortage. For years, the student housing industry has also been building suites that students share as roommates. The VIVE will be building on this trend.  Co-living is an extension of what millennials have come to know while in college.

Anyone born between 1981 and 1996 (ages 23 to 38 in 2019) is considered a Millennial, and anyone born from 1997 onward is part of a new generation. Millennials, also known as Generation Y, are the demographic cohort following Generation X and preceding Generation Z. Researchers and popular media use the early 1980s as starting birth years and the mid-1990s to early 2000s as ending birth years

Millennials’ demand for more flexible living spaces and new amenities have also created the opportunity for more value-add plays

Downtown Orlando is a vibrant community, and this location we love near Lake Eola with its high Walk Score, and Thornton Park is a highly desirable neighborhood.”

For a growing number of millennials, amenities aren’t enough anymore. Instead, they’re after a perk that’s much tougher to quantify: community. The VIVE will provide the ability to have your own living space at an affordable price. The building will be their living room and the city as their backyard.

The target audience for micro-apartments is single twenty-somethings with relatively good paying jobs in the city. These are the residents who are willing to trade square footage for a vibrant, convenient location; who live alone and haven’t yet accumulated many possessions; and who spend the majority of time at work or socializing outside of their apartment.

Micro-apartments’ occupancy rates and rent per square foot currently outperform those of regular units. Nearly 1 in 4 renters of conventional units’ express interest in renting a micro-apartment. They’d be willing to sacrifice space for 20-30% lower rent, a highly desirable location, and the ability to live alone. 82% of current micro-apartment dwellers weren’t intentionally seeking out smaller units. Rather, location was the deciding factor for 97% of these renters, in addition to factors like proximity to work and public transit; neighborhood amenities; the ability to live alone; and price.

Millennials are waiting longer to settle down, so they’re living alone longer. They want to live, work, and play in the heart of the city. The best-case scenario is to find a studio apartment in a vibrant neighborhood that’s convenient to work, and also allows them to spend their free time how they choose.