Ten or so years ago, most young people looking for a home thought they had one choice: renting. Their financial status required it. But times are changing and continue to change for homebuyers, young and old. Now, when given the choice, many are sticking to renting. In fact, according to U.S. Census data, one-third of all American households rent and nearly half of apartment renters -- 41 percent -- rent by choice.

There are several reasons for this trend, according to Todd Noell, vice president of Robert Charles Lesser & Company, a real estate advisory services firm. "One of the main things we've seen in market analyses is the desire for ease of lifestyle," says Noell. "Leisure time has continued to dwindle in the U.S., and people are working longer hours and sitting in traffic longer. They don1t want the upkeep a house requires. Apartments, like condominiums, offer a chance to avoid exterior maintenance and also offer amenities that provide a greater ease of lifestyle overall."

A new tax law exempting the capital gains tax for many home sellers also works to the advantage of renters. Because of this change in tax law, the number of apartment households could grow more than 10 percent over the next several years, suggests analysis by the National Multi Housing Council (NMHC).

Demographic changes are another contributing factor. Renting an apartment is no longer just the dream of recent college graduates. Apartment renters are becoming older, more affluent and more educated. A recent study by the NMHC points out that the fastest-growing segment of apartment renters during the past 3 years has been households earning $50,000 or more. The study also shows that empty nesters in their 50s will be one of the fastest growing age groups over the next 10 years, and they show a much higher propensity to rent than people their age in previous generations. The population of traditional renters (ages 20 to 29) is also expected to increase -- by 11 percent between now and 2010.

One prolific apartment developer, Atlanta-based Post Properties, is positioned to capitalize on the renters-by-choice trend. "Our research has shown that people are staying single longer and childless longer," says Tom Wilkes, president of Post Apartment Management. In fact, married couples with children have been declining in number since the 1970s and today account for just one-quarter of all households, according to current U.S. Census population reports. "The American dream of the suburban home with the yard is not as prevalent among people in their late 20s and early- to mid-30s," Wilkes notes.

Wilkes says Post has observed that more and more people are choosing homes based on location to their jobs. "Many of these people were achieving greater affluence in life and greater ability to pay more, but wanted the flexibility that renting offers," he says. "In order to accommodate those desires, we have searched out opportunities that are closer to major job centers in a central business district or central entertainment district that are also close to public transportation."

Some of those opportunities include Post Parkside and Post Biltmore in Midtown Atlanta as well as Post Peachtree, which is Post' first high-rise in-fill development in Atlanta' Buckhead neighborhood. "Post Peachtree is arguably one of the most desirable locations for high-rise living," says Wilkes. "It is close to many businesses and within walking distance of restaurants and entertainment venues. That' become an attractive option for people who are looking for second homes or a home base if they travel in and out of the city."

Post properties enable residents to transfer from one metropolitan city to another and still stay within the Post family, which is an attractive benefit for lifestyle renters.

Post also has more than 2,000 apartment units in 14 properties in uptown Dallas, from Post Worthington to Post Square to Post Meridian. The developer has three communities in Charlotte, North Carolina, that are adjacent to downtown, and is building the third phase of a building on Harbor Island, close to central Tampa, Florida.

"I think that people want to maintain their flexibility from a geographic as well as an investment standpoint," notes Wilkes. "In other words, investing in the stock market is a much more liquid investment than homeownership. Secondly, the work force is much more mobile, and the requirement for flexibility within someone' own company as well as moving from one job to the other has necessitated the geographic flexibility."

Post also provides the necessary amenities to people who seek ease of lifestyle. Residents have access to theaters, arts and entertainment; shopping and grocery stores are within walking distance; and office space is in close proximity. Post properties also feature exercise facilities and gourmet kitchens.

As for developers like Post, Noell says it is easier to provide apartments than to deal with the upfront sales required for condominium financing. "Some of the town centers that have been built are providing apartment product first," he adds. "And in some cases, the only way to get that lifestyle [having retail on the ground floor and residential above] is to be an apartment renter."

So will the trend in renting by choice continue? Most analysts agree that the rise in the number of single households and couples without children will contribute to more renters-by-choice, as well as continuing problems with intown housing affordability, commuting and longer work hours. "I think in the larger cities, where these pressures are taking a greater toll, is where we' see more of these lifestyle renters really emerging," says Wilkes. "It has certainly been a phenomenon forever in cities like Manhattan and Chicago."

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