Downsizing boomers drive apartment rentals

Why it matters: The local apartment construction boom of the past decade was driven in part by empty nesters and other older Minnesotans looking to downsize and shed upkeep duties.

• This partially answers the question many have: Who is living in all these new apartments?

The big picture: Usually when a senior downsizes to one of these apartments, they leave behind a single-family house, allowing a younger generation a chance at ownership.

Between the lines: New buildings often cater to the "active adult" (55+) and senior demographics.

• In some suburbs, virtually all of the new multifamily housing is for seniors.
• Suburbs are under pressure to build affordable housing and often face pushback when such projects are proposed. But as University of Minnesota urban planning professor Ed Goetz told the Star Tribune, "Senior housing has long been the 'acceptable' version of affordable housing."

Zoom in: The Reserve at Arbor Lakes development in Maple Grove features a game room with air hockey and video games. When Nick toured the building with late developer Kelly Doran in 2018, Doran noted that the space was meant for grandparents wanting to entice their grandkids to visit frequently.

• "Grandma and grandpa's place becomes pretty cool, and that is worth every dollar in rent," he said at the time.

Reality check: The 25–34 demographic is still the dominant tenant in the Twin Cities, making up 30.5% of all renters, according to Point2Homes.

What we're watching: When will condo construction pick back up in the Twin Cities?

• Plenty in the 55+ crowd would rather buy an apartment than rent one, but developers say they're too expensive to build and state liability laws make them riskier for contractors.