There are some bright spots for the workforce's youngest generation however.
A new analysis by LinkedIn’s Economic Graph team highlights the 15 U.S. metro areas with the largest percentages of Gen Zers (those aged 25 and under), and the results show that traditional college-centric metros are providing a lot of opportunities for young workers.
In a lot of cases, these areas also overlap with state capitals & centers of excellence for healthcare & biosciences, creating a vibrant economy and lifestyle that creates a strong social life along with job opportunities and quality of life that attracts even more residents.
The industries with the most opportunities also tend to be attractive to younger workers: social media/marketing, design, tech, and healthcare, not to mention the "gig" and creative culture opportunities these economies tend to create organically.
From a multifamily perspective, this creates more demand for rental housing especially with affordability becoming such a big factor in choosing where to live.
Many Gen Zers are skeptical about being able to afford a home right now, but in a lot of areas like Madison, Pittsburgh, Raleigh-Durham and others, it's still possible to find nice neighborhoods with affordable rental options.
With a strong job base, residents can afford nicer amenities and live in neighborhoods where they can connect with other young workers who may be new to the area as well, creating a stronger sense of community. That, in turn, helps create demand for different recreational choices, restaurants, art communities and more, creating a flywheel effect for local economies that can take advantage of it.
This report isn't perfect; their methodology is based solely on LinkedIn data. That likely leaves out a certain subset of workers and metros, but it's interesting to see the amount of overlap with this list and the fastest growing cities in the US. It certainly seems more than coincidental.
Key Takeaways
- This report supports what we've discussed in the past and highlights the types of trends we like to see in the markets where we're looking for deals.
- Local economies in the areas that create opportunities for young workers are likely to hold up better if there's an extended downturn, and they are likely to bounce back quickly when the economy rebounds.
- The influx of recent grads will create more demand for rental housing, especially with the current high costs of home ownership.
- Looking in markets with a strong job base in desirable areas will continue to provide opportunities in real estate if you can find deals that fit your model.
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About Ellie Perlman
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
