More millennials who can afford to buy in Bradenton are renting instead, study shows
While the super-heated home market in Bradenton and elsewhere has kept many potential home buyers on the sidelines, many millennials often look to high-end apartments near downtown amenities for their preferred lifestyle.
The number of Bradenton millennials submitting apartment applications increased by 59% in 2021, according to RentCafe.com, a nationwide apartment search website.
On average, renters who applied for an apartment in Bradenton in 2021 had $4,356 more income than prospective renters in 2020, when their income was $34,524, according to the RentCafe study.
“Renting continues to be the go-to option in 2021 for a growing number of people with incomes that might allow them to purchase a home. According to our most recent analysis of rental application data, as many as 39% of applicants in 2021 had individual incomes above $50,000 — up from 32% five years prior,” the report said.
There has been a nationwide surge in prices for existing single-family houses since the outbreak of the COVID-19 pandemic. In the Bradenton area, the median home price in October was $425,000, an increase of 18.1 % from the median of $360,000 the same month a year ago.
The over stimulated market has also served to raise rents, as well as the price for upscale apartment complexes.
In June, the Aria at Bradenton, a 302-unit luxury apartment complex at 102 Manatee Ave. W., sold for $73.5 million. Aria was built on the former site of the Bradenton Herald, across the street from Manatee Memorial Hospital.
“That’s strong money, and it shows the demand and appetite for downtown rentals. It is an endorsement of the downtown Bradenton market. It shows that people want to live there. It’s a very strong statement for the city,” Tim C. Davis, principal with SVN | Alliance Commercial Real Estate Advisors, said of the sale in June.
In recent years, apartments have been hot commodities. Some of Manatee County’s largest property transactions were for apartments:
900-unit waterfront Carlton Arms of Bradenton, 5200 Riverfront Drive, sold for $110.5 million.
360-unit Echo Lake Apartments at Lakewood Ranch, 11502 Echo Lake Circle, sold for more than $76 million.
376-unit Champions Walk apartment complex, 4148 53rd Ave. W., sold for $58 million.
264-unit Lost Creek at Lakewood Ranch, 11140 Lost Creek Terrace, sold for $50,500,000.
In its November 2021 Rent Report, apartmentguide.com says that on a national level, rent prices are up for the long term.
Rents for one-bedroom apartments were up for all 50 states, while only South Dakota showed a decrease in rental prices for two-bedroom apartments.
“When compared year-over-year, rent prices for both one-bedroom and two-bedroom apartments have increased significantly. Prices are up nearly 20 percent for a one-bedroom and just over 17 percent for a two-bedroom apartment,” according to the Rent Report.
In Florida, rents are up 35.47% in 2021.
“While the pandemic saw a drastic decrease in rents, the trend quickly reversed as renters, both new and old, returned to cities. As this report shows, year-over-year rent prices are up by double digits nationwide, a trend likely to continue according to economists at the Dallas Fed,” according to the Rent Report.
“With rising rent prices, rent control has seen renewed interest as a tool to keep housing affordable,” the Rent Report said, citing a St. Paul, Minn., rent control ordinance approved by voters.
