Greg Willett Provides Expert Commentary to GlobeSt. on the Shift in Household Formation and Urban vs. Suburban Demand

DALLAS—LeaseLock is pleased to announce that Chief Economist Greg Willett was recently featured in GlobeSt. to discuss the evolving dynamics of the multifamily sector. The report, which explores why suburban multifamily assets are currently outpacing the urban core, relies on Willett’s extensive data to explain the migration of demand toward outer-ring markets.

The GlobeSt. analysis details a significant trend: as the largest segment of the renter population enters a new life stage, the geographic preference for housing is shifting outward, favoring suburban properties over traditional high-density urban centers.

GlobeSt. Insight: Household Formation Moves Outward

In his contributions to GlobeSt., Willett explains that the current performance gap between urban and suburban assets isn’t just a fluke of the pandemic, but a result of long-term demographic shifts.

“The core of the renter pool—the aging Millennial generation and the leading edge of Gen Z—is reaching the age where life events like marriage and child-rearing trigger a move to the suburbs,” Willett told GlobeSt.

Willett’s analysis in the GlobeSt. feature points to several key drivers:

  • Affordability and Space: Suburban markets offer more square footage per dollar, which is a primary motivator for maturing households.

  • Supply Balance: Unlike the urban core, which has seen a massive concentration of new luxury deliveries, many suburban submarkets have maintained a healthier balance between new supply and organic demand.

  • Work-Life Balance: The permanence of hybrid work models continues to support demand in suburban corridors that offer a lifestyle-centric environment.

Leveraging GlobeSt. Insights for Asset Protection

The GlobeSt. feature highlights a critical takeaway for multifamily operators: as demand shifts geographically, the risk profile of a portfolio shifts with it. Greg Willett’s research suggests that while suburban assets are seeing higher demand, they are not immune to the broader economic pressures facing the industry.

As noted by the experts at GlobeSt., understanding these nuances in household formation allows owners and operators to better position their assets for long-term stability and growth.

Read the full report at GlobeSt.com