2 years ago I wrote the first-edition of my book, Next-Level Income, to share my story and how I used the “Holy Grail” of real estate to achieve financial independence. It was released last month on Amazon in both paperback and Kindle formats. But you and your friends and family can get your free copy here. If you’d like to share the link, it is nextlevelincome.com/book.

So why did I update my book at this time? Over the past few years we have not only seen a continuation of the major demographic trends that inspired me to invest in multifamily in 2013, but we’ve also seen 4 major trends that will continue to fuel the multifamily sector:

Trend 1: Millennials

Over the next decade, the number of millennial renter households will DOUBLE. Young adults have always tended to have less income and wealth, making them more inclined to rent rather than own. However the Great Recession, student debt and the COVID-19 crisis will all contribute to this tendency. In some metros, nearly one in five millennials expect to rent forever.

Trend 2: Growing Minority and Immigrant Population

This country was built by immigrants. Immigrants tend to rent in greater proportions than our current population. Between 2015 and 2035 this demographic of renters will swell from 33.9M to 38.5M, accounting for ~75% of household growth in the next decade. About half of all immigrants are renters, including nearly 75% of immigrants under age 35.

Trend 3: Baby Boomers

Between 2007 and 2017 the biggest change in the renting population came from seniors aged 60 and over. That’s an increase of 43% compared to a 7% increase in renters 34 or younger! Baby Boomers are renting due to divorces, selling their homes to unlock equity and lifestyle reasons.

Trend 4: High-Income Renters

Another interesting trend is that not only are those renters in the median income range, but also the majority of growth in renters is coming from high-income households. These renters are choosing to rent and appreciate safe, clean neighborhoods near good jobs and schools.

If you understand the above trends and focus on markets with strong demographics, good jobs and schools, this can help drive performance of an asset. If you’d like to learn more about the reasons why I’ve been investing in real estate for more than 20 years, get a free copy of my book, Next-Level Income, and check out our website to learn how to use the Next-Level Income strategy to build a stream of passive income.