As Urban Real Estate Investing is on the rise, there are a lot of factors in determining why this growth is happening.  Investors have become savvier on the neighborhoods themselves, the demographics, their prospects, and how these all come together but the real push has been from the cities themselves and who they are trying to attract.  Here are 5 key trends that are pushing the market forward.

1. Rent is becoming the norm.  The workforce is simply too fluid and mobile for a 30-year mortgage.
2. Tenants are willing to give up living space for greater neighborhood options.  People will pay more to live close to the things they enjoy doing.
3. There is a rise in the popularity of smaller places with more amenities.  You are finding more studio apartments with facilities for gym, office, and lounge space.
4. Buyers are investing in renovating their properties.  Old fixer-uppers are no longer remaining stagnant as investors look to maximize profits and retain tenants.

I left off the 5^th because I am a member of this group and it rings especially true to me.  Millennials are now shaping the housing market and urban areas are what we simply prefer.  The allure of New York with its late-night food, a multitude of stores, never-ending events, and endless housing options at all different levels is exactly what we are looking for.  Let us not forget the need to socialize, which is being reinforced daily through apps and websites, and you begin to understand why these densely populated areas are thriving.   These areas also have the buzzword worthy additions that keep residents like us: vegan shops, spin classes, IMAX theaters, etc.  You simply cannot find these in abundance in rural areas. 

As we wrap up, let us look at the bigger picture here.  In 30 of the largest US metro areas, urban real estate has strongly outperformed suburban and rural counterparts, and this gap may only continue to widen.  With those 30 areas represented, this accounts for 46% of the population and that should tell the story in a nutshell.