7 Super Small-Cap Growth Stocks to Buy

Stocks with smaller market values are outperforming by a wide margin so far this year, and strategists and analysts alike say small caps should continue to lead the way as the economic recovery gains steam.

“The U.S. economy is currently trending toward high-single digit GDP growth in 2021 as COVID-19 vaccine distribution expands and we gradually emerge from the pandemic,” says Lule Demmissie, president of Ally Invest. “That environment favors small-cap names, which tend to have a more domestic focus than larger multinational firms.”

Small caps tend to outperform in the early parts of the economic cycle, so it should come as no surprise that they are clobbering stocks with larger market values these days.

Indeed, the small-cap benchmark Russell 2000 index is up 13.6% for the year-to-date through April 8, while the blue chip Dow Jones Industrial Average added just 9.5% over the same span.

Keep in mind that small-cap stocks come with heightened volatility and risk. It’s also important to note that it can be dangerous to chase performance. But small-cap growth stocks – particularly in this environment – can offer potentially much greater rewards. 

Given the increased interest in these securities, we decided to find some of analysts’ favorite small caps to buy. To do so, we screened the Russell 2000 for small caps with outsized growth prospects and analysts’ highest consensus recommendations, according to S&P Global Market Intelligence.

Here’s how the recommendation system works: S&P Global Market Intelligence surveys analysts’ stock recommendations and scores them on a five-point scale, where 1.0 equals a Strong Buy and 5.0 is a Strong Sell. Any score below 2.5 means that analysts, on average, rate the stock as being Buy-worthy. The closer a score gets to 1.0, the stronger the Buy recommendation.

We also limited ourselves to names with projected long-term growth (LTG) rates of at least 20%. That means analysts, on average, expect these companies to generate compound annual earnings per share (EPS) growth of 20% or more for the next three to five years. 

And lastly, we dug into research, fundamental factors and analysts’ estimates on the most promising small caps. 

That led us to this list of the 7 best small-cap growth stocks to buy now, by virtue of their high analyst ratings and bullish outlooks. Read on as we analyze what makes each one stand out.

Share prices are as of April 8. Companies are listed by strength of analysts’ consensus recommendation, from lowest to highest. Data courtesy of S&P Global Market Intelligence, unless otherwise noted.

1 of 7

Q2 Holdings

Digital banking technologyDigital banking technology
  • Market value: $5.7 billion
  • Long-term growth rate: 150.0%
  • Analysts’ consensus recommendation: 1.68 (Buy)

Q2 Holdings (QTWO, $103.06) provides cloud-based virtual banking services to regional and community financial institutions. The idea is to make it so that smaller firms – which are sometimes small caps themselves – can give account holders the same kind of top-flight online tools, services and experiences as the industry’s big boys.

To that end, Q2 recently announced the acquisition of ClickSWITCH, which focuses on customer acquisition and retention by making the process of switching digital accounts easier. Terms of the deal were not disclosed. 

Q2’s business model and execution has Wall Street drooling over the small cap’s growth prospects. Indeed, analysts expect the software company to generate compound annual earnings per share growth of 150% over the next three to five years, according to data from S&P Global Market Intelligence. 

“In the last year, the pandemic has accelerated the digital transformation efforts and investments of the financial services industry, and we believe Q2 Holdings is well positioned to support and grow its customer base,” writes Stifel equity research analyst Tom Roderick, who rates the stock at Buy. 

Of the 19 analysts covering Q2 tracked by S&P Global Market Intelligence, 10 call it a Strong Buy, five say Buy and four rate it at Hold. Their average target price of $152.25 gives QTWO implied upside of almost 50% over the next 12 months or so. Such high expected returns make it easy to understand why the Street sees QTWO as one of the best small-cap growth stocks.

2 of 7

BellRing Brands

A man drinking a protein shakeA man drinking a protein shake
  • Market value: $962.8 million
  • Long-term growth rate: 21.6%
  • Analysts’ consensus recommendation: 1.60 (Buy)

BellRing Brands (BRBR, $24.37), which sells protein shakes and other nutritional beverages, powders and supplements, is forecast to generate unusually healthy EPS growth over the next few years. 

Stifel equity research, which specializes in small caps, says BellRing offers a “compelling growth opportunity” thanks to its positioning in the large and fast-growing category known as “convenient nutrition.”

U.S. consumers are increasingly turning toward high-protein, low-carbohydrate foods and beverages for snacks and meal replacement, Stifel notes, and BellRing Brands, spun off from Post Holdings (POST) in late 2019, is in prime position to thrive from those changing consumer tastes. 

After all, the company’s portfolio includes such well-known brands as Premier Protein shakes and PowerBar nutrition bars. 

In another point favoring the bulls, BellRing’s “asset-light business model requires limited capital expenditures and generates very strong free cash flow,” notes Stifel analyst Christopher Growe, who rates the stock at Buy.

Most of the Street also puts BRBR in the small-caps-to-buy camp. Of the 15 analysts covering BRBR, eight call it a Strong Buy, five say Buy and two have it at Hold. Their average price target of $28.33 gives the stock implied upside of about 16% over the next year or so. 

With shares trading at just a bit more than 25 times estimated earnings for 2022, BRBR appears to offer a compelling valuation.

3 of 7

Rackspace Technology

Cloud technologyCloud technology
  • Market value: $5.3 billion
  • Long-term growth rate: 21.8%
  • Analysts’ consensus recommendation: 1.50 (Strong Buy)

Rackspace Technology (RXT, $25.61) partners with cloud services providers such as Google parent Alphabet (GOOGL), Amazon.com (AMZN) and Microsoft (MSFT) to manage its enterprise customers’ cloud-based services. 

And make no mistake, this sort of expertise is much in demand.

The pandemic accelerated many industries’ migration to cloud technology. As such, plenty of firms have discovered they need all the help they can get when it comes to transitioning and managing their operations – often with more than one cloud service provider.

“The prevalence of a multicloud approach has created integration and operational complexity that require expertise and resources most companies lack,”  writes William Blair analyst Jim Breen, who rates RXT at Outperform (the equivalent of Buy). “This creates an opportunity for a multicloud services partner to enable businesses to fully realize the benefits of cloud transformation.”

Breen adds that research firm IDC forecasts the managed cloud services market to grow 15% a year to more than $100 billion by 2024.

As the leading company in the field of multicloud services, bulls argue that Rackspace stands to benefit disproportionately from all this burgeoning demand. 

Speaking of bulls, of the 10 analysts covering the stock tracked by S&P Global Market Intelligence, five rate RXT at Strong Buy and five call it a Buy. The bottom line is that Rackspace easily makes the Street’s list of small-cap growth stocks to buy.

4 of 7

Chart Industries

Cryogenic technologyCryogenic technology
  • Market value: $5.3 billion
  • Long-term growth rate: 34.2%
  • Analysts’ consensus recommendation: 1.50 (Strong Buy)

Shares in Chart Industries (GTLS, $146.76), which manufactures cryogenic equipment for industrial gasses such as liquefied natural gas (LNG), are riding the global secular trend toward sustainable energy.

The market certainly likes GTLS’ commitment to greener energy. The small-cap stock is up more than 410% over the past 52 weeks – analysts expect a torrid pace of profit growth over the next few years to keep the gains coming. Indeed, the Street forecasts compound annual EPS growth of more than 34% over the next three to five years.

Analysts say the company’s unique portfolio of technologies gives it an edge in a growing industry. To that end, they applauded its $20 million acquisition of Sustainable Energy Solutions in December because it bolsters the company’s carbon capture capabilities.

“In the context of the decarbonization megatrend, Chart is a one-of-a-kind play on the global shift to more gas-centric economies,” writes Raymond James analyst Pavel Molchanov in a note to clients. “There is upside potential from large liquefied natural gas projects. Notwithstanding the lingering headwinds from the North American energy sector, we reiterate our Outperform [Buy] rating.”

Stifel, which chimes in with a Buy rating, says GTLS deserves a premium valuation given its outsized growth prospects. 

“With potentially a decade or more of high single-digit to low double-digit revenue growth, more recurring revenue, accelerating hydrogen opportunities, and the potential big LNG surprise bounces, we expect shares could trade north of 30 times normalized earnings,” writes analyst Benjamin Nolan.

The stock currently trades at nearly 30 times estimated earnings for 2022, per S&P Global Market Intelligence. Small caps to buy often sport lofty valuations, but with a projected long-term growth rate of more than 34%, one could argue GTLS is actually a bargain.

Raymond James and Stifel are very much in the majority on the Street, where 12 analysts rate GTLS at Strong Buy, four say Buy, one has it at Hold and one says Sell.

5 of 7

NeoGenomics

Lab equipmentLab equipment
  • Market value: $5.5 billion
  • Long-term growth rate: 43.0%
  • Analysts’ consensus recommendation: 1.33 (Strong Buy)

NeoGenomics (NEO, $47.87), an oncology testing and research laboratory, is still coming out from under the pressure of the pandemic, which led to the cancellation of legions of procedures.

But there’s been quite a lot of activity at the company, nevertheless, and analysts still see it as one of the better small-cap growth stocks to buy.

In February, the company said longtime Chairman and CEO Doug VanOort would step aside to become executive chairman in April. He was succeeded by Mark Mallon, former CEO of Ironwood Pharmaceuticals (IRWD). The following month, NeoGenomics announced a $65 million cash-and-stock deal for Trapelo Health, an IT firm focused on precision oncology. 

All the while, shares have been lagging in 2021, falling more than 11% for the year-to-date vs. a gain of 13.5% for the small-cap benchmark Russell 2000.

Although COVID-19 has been squeezing clinical volumes – and bad winter weather is always a concern – analysts by and large remain fans of this small cap’s industry position. 

“We continue to find the company’s leading market share in clinical oncology testing and expanding presence in pharma services for oncology-based clients to be a very attractive combination,” writes William Blair equity analyst Brian Weinstein, who rates NEO at Outperform. 

Of the 12 analysts covering NEO tracked by S&P Global Market Intelligence, nine call it a Strong Buy, two say Buy and one says Hold. With an average target price of $63.20, analysts give NEO implied upside of about 32% in the next year or so. That’s good enough to make almost any list of small caps to buy.

6 of 7

Lovesac

A Lovesac storeA Lovesac store
  • Market value: $917.3 million
  • Long-term growth rate: 32.5%
  • Analysts’ consensus recommendation: 1.14 (Strong Buy)

The Lovesac Co. (LOVE, $62.47) is a niche consumer discretionary company that designs “foam-filled furniture,” which mostly includes bean bag chairs. 

Although it operates about 90 showrooms at malls around the country, revenue – thankfully – is largely driven by online sales. That’s led to a boom in business as folks, stuck at home, shop online for ways to spruce up their living spaces.

Shares have followed, rising about 45% for the year-to-date and more than 1,000% over the past 52 weeks. And analysts expect even more upside ahead, driven by a long-term growth rate forecast of 32.5% for the next three to five years, according to S&P Global Market Intelligence. 

Stifel, which says LOVE is among its small caps to Buy, expects the consumer shift to buying furnishing online to persist, and even accelerate, once the pandemic subsides.

“Lovesac is well positioned for continued share gains in the furniture category with its strong product, omni-channel capabilities and enhancements to the platform, many of which were initiated during the pandemic,” writes Stifel’s Lamont Williams in a note to clients.

The analyst adds that LOVE has a long ramp-up opportunity thanks to a new generation of home buyers.

“As the housing market remains healthy there is the opportunity to capture new buyers as more middle- to upper-income millennials become homeowners and increase spending on [the company’s] category,” Williams writes. 

Of the seven analysts covering the stock tracked by S&P Global Market Intelligence, six rate it at Strong Buy and one says Buy. That’s a small sample size, but the bull case for LOVE as one of the better small-cap growth stocks to buy still stands.

7 of 7

AdaptHealth

An elderly person using a walker during home rehabAn elderly person using a walker during home rehab
  • Market value: $4.3 billion
  • Long-term growth rate: 43.0%
  • Analysts’ consensus recommendation: 1.11 (Strong Buy)

AdaptHealth (AHCO, $37.61) comes in at No. 1 on our list of small caps to buy thanks to their outsized growth prospects. The bull case rests partly on demographics and the aging of baby boomers. 

AdaptHealth provides home healthcare equipment and medical supplies. Most notably, it provides sleep therapy equipment such as CPAP machines for sleep apnea – a condition that tends to increase with age and weight.

With the majority of the boomer cohort of roughly 70 million Americans hitting their 60s and 70s, home medical equipment for sleep apnea and other conditions is increasingly in demand.

Mergers and acquisitions are also a part of the company’s growth story, notes UBS Global Research, which rates AHCO at Buy. Most recently, in February, the company closed a $2 billion cash-and-stock deal for AeroCare, a respiratory and home medical equipment distributor. 

“AdaptHealth exits 2020 with material themes of accelerating growth,” writes UBS analyst Whit Mayo. “In each quarter of 2022, we assume that AHCO acquires $35 million in annual revenues, closing these deals at the middle of the quarter. This drives estimated acquired revs from yet to be announced deals of $70 million.”

Small caps have been rallying in 2021, but not AHCO, which is essentially flat for the year-to-date. Happily, the Street expects that to change sooner rather than later. With an average target price of $47.22, analysts give the stock implied upside of about 25% over the next 12 months or so.

Of the nine analysts covering AHCO tracked by S&P Global Market Intelligence, eight rate it at Strong Buy and one says Buy. As noted above, they expect the company to generate compound annual EPS growth of 43% over the next three to five years.

Source: kiplinger.com

Why Paying More for Rent Can Be a Good Thing

Why Paying More for Rent Can Be a Good Thing - Couple Paying RentWe have all heard the stories on the news about how apartment rent is continuing to rise to near-historic rates. As America takes it last few steps to full recovery from the economic challenges that plagued the nation a few years ago, a new discussion has emerged. This one has very little to do with bank interest rates or mortgage qualifications. The new discussion is about value and how we perceive it, and it seems that each generation – stereotypically speaking – has its own take on it. This is especially true when it comes to how and where we choose to live.

Baby Boomers

Typically, retiring baby boomers have a variety of options when it comes to the value they have in housing. Many have been homeowners for years and now that they are retiring empty nesters, they’re looking to downsize.

However, they may not want to be locked into a burdensome mortgage that forces them to stay put. A desire to travel, a yearning to connect to family that may be spread across the country, and being on a quest for active retirement are leading downsizing baby boomers to look to multi-family solutions. The offerings of luxury apartment communities allow for amenity-rich lifestyles, while offering them the flexibility to always be on-the-go!

Gen X

Replacing many of the retiring baby boomers in the C-Suite is Gen X. They were some of the hardest hit by the economic downturn: many invested everything they had into the housing market right before the crash. As they recover, those who have called apartment living home for the past few years may be hesitant – or unable – to return to the financial trappings of home ownership. As they continue to grow their careers, they seek executive positions that could take them across the country. This period of growth and transition comes with the desire to live in a better apartment that meets their location and lifestyle needs.

Millennials

The children of the baby boomers are the most influential generation to date. They watched their parents struggle with home ownership for a number of reasons, whether it was due to the economy, divorce, or job changes. They also likely watched their neighbors struggle to maintain more house than they could afford.

As it turns out, Millennials would rather spend money on experiences than on housing. Apartments – especially micro-apartments – are perfect for them.  Less space means a lower rental rate, and they’re OK with both. For many Millennials, this will be their first apartment and the first time that they are fully independent of their parents. By saving money and making due with less stuff, they have the ability to afford the experiences they seek while still maintaining their independence.

Gen Z

What will the future hold for today’s college and high school students that will soon follow in Millennials’ footsteps? As technology becomes more abundant, will they move into apartments with greater automation? Will they choose to remain in a communal living space and move into the “adult dorms” that are beginning to pop up across the U.S. as the next trendy apartment option? During their time in student housing, they will surely be exposed to a multitude of apartments for rent that are filled with luxurious and cutting-edge amenities. Will they seek space, location, luxury or something else when the venture out on their own? Whatever the case, their hard-earned money will go to the apartment they say is right for their lifestyle – and their budget.

If you are looking for apartments for rent that fit you and your budget, look no further than www.apartmentsearch.com. Our national database can match you to the apartment you’ve been looking for, plus help you find the best value for your hard-earned dollar. To learn more about how ApartmentSearch can help you find your next apartment home, visit www.apartmentsearch.com today.

Source: blog.apartmentsearch.com

Finding New Cities and New Apartments in 2016

AS_NewCitiesNewYear2016 is right around the corner, ringing in a wealth of new opportunities for everyone in America and abroad. As the job market continues to grow, so will the companies driving the new economy. This also means wages will continue to grow, and more people will be relocating to cities throughout the U.S. for job opportunities.

Job relocation, along with the fact that more Millennials are moving out of the homes they have shared with their parents as well as the emergence of the new Generation Z workforce, means that apartment demand will be at an all-time high. Now is the time to start getting ready for the new year, your new job and your new apartment.

Hot Cities for 2016

Some of the most in-demand cities for 2016 will be Austin, Texas; Houston, Texas; Denver, Colo.; Charlotte, N.C.; and Seattle, Wash. Population-dense cities, such as New York, N.Y.; San Francisco, Calif.; and Boston, Mass., are also beginning to see additional apartment vacancies, due to the high cost of living there.

In addition, according to Livability.com, many of the “best places to live for 2016” are small to medium-sized cities throughout the country. These great places are not only seeing a boom in job opportunities but also an increase in the lifestyle amenities that apartment residents enjoy. These include walkability, trendy restaurants, bars and food trucks; and high-tech connectivity from services such as Google Fiber, and AT&T GigaPower.

A New Apartment for Any Demographic

There really is an apartment for anyone, any lifestyle and any budget. One of the fastest-growing segments of the apartment population is Baby Boomers. Rather than spending their hard-earned retirement funds on a cumbersome mortgage (not to mention the hefty hidden costs of owning a home), they are instead choosing the rental lifestyle and finding apartments with luxuries they would not otherwise be able to afford. The up-and-coming Gen X executives who are relocating are also choosing the flexibility that apartment living offers.

As you can see, 2016 is shaping up to become the year of the renter.

If you are starting a new life and are looking for a new apartment to rent in your city – or anywhere in the U.S. – the best way to the perfect home for you is to visit ApartmentSearch.com. We help you quickly narrow down your choices by neighborhood, walkability, price range and desired amenities – including tech-friendly features. You can even earn up to $200 in rewards for you or to be donated to charity when you let your new apartment community know that you found them on ApartmentSearch.com.

Source: blog.apartmentsearch.com

Baby Boomers: Here’s How to Sell Your Home to Millennials

Shopping for a home has evolved over the years. Here’s what you need to know about the new generation of buyers.

For years we’ve seen the shift in Baby Boomers ditching their large suburban homes for the excitement of urban life. And we’re noticing the reverse from millennials: leaving behind small spaces along with the hustle and bustle of the city.

They’re open to a new world of suburban living, with single-family homes, more storage and closet space, and some outdoor space all their own.

These millennials, born between the mid ’80s and the late ’90s, came of age in a shifting cultural and social environment. Their experiences aren’t the same as their Baby Boomer parents, and as such, their preferences differ from those of their parents, who bought a generation ago.

Here are some real estate considerations to help you sell to millennial buyers.

Millennials are busy

Today’s young people work long hours, and they want to spend the free time they have with friends and family.

They’re also more transient than their parents’ generation. So, when it comes to real estate, many of them seek turn-key homes for quick and easy move-in. They can’t fathom taking the time to undertake renovating a bathroom or kitchen.

No matter how great the opportunity, many of today’s buyers aren’t interested in painting or “making it their own” as our parents did when they moved into homes they planned on living in for 30 years or more.

Home searching is like dating

Millennials grew up attached to their phones. They hail a car and order food with their fingertips. And now, instead of meeting at a bar, they date with their thumbs. Swipe right for the potential mate, or reject them by swiping left.

When it’s time to buy a home, their experience is much the same, thanks to smartphones and real estate apps. As a home seller, you and your agent must invest an incredible amount of time and money on your home’s photo shoot. If you don’t, you may never get a first “date” with your prospective suitor. If the buyer isn’t drawn to your photos, they’re on to the next place.

Bigger is no longer better

In the ’80s, a McMansion with quadruple master closets, oversized Jacuzzi tubs, formal rooms, and large basements were a sign of success, and coveted by home buyers.

Today, millennials want smaller and simpler homes on smaller parcels. Bigger houses or any land more than half an acre equals more work and maintenance to these first-time buyers, accustomed to the easy life.

You can’t make your home smaller, but if you are serious about selling and want to account for this trend, your price will need to meet the market.

Location matters more than ever

Millennial buyers want the urban experience, as best as they can get, in the ‘burbs. This means homes that are walking distance to a village or town, near the train, and in bustling neighborhoods are among the most popular.

While being away from town, secluded, and with more land was a status symbol in the ’80s, it’s a deal killer today. Unfortunately, you can’t move your home to a better location — but you can adjust your price to meet the market.

If you’re a Boomer selling a long-time family home now or in the future, and the millennial is your potential buyer (think: customer), you need to adjust your mindset to meet theirs. You can’t assume that anything related to your original home search applies today. Get ahead of it, or your home may spend many months (or even years) on the market.

Selling your home? Check out our Sellers Guide for more tips and resources.

Related:

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

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Source: zillow.com

Is the Single-Family Rental Market a Bubble?

With investment money pouring into single-family rentals, some experts have warned that the market’s boom could be unsustainable over the long-term. So reports GlobeSt.com.

Tom MacManus, president of Money360, said during a recent virtual panel discussion, that the “top-notch pricing” for builders of single-family rentals might be too optimistic.

Trevor Koskovich, president of investment sales at NorthMarq, countered that with baby boomers cashing out of their homes and millennials unable to afford them, single-family rentals will remain in demand.

Read the full article from GlobeSt.com.

Source: themortgageleader.com

More Than a Quarter of Millennial Homeowners Want to Go Back to Renting

Posted on February 13th, 2020

I guess homeownership isn’t for everyone, at least if you consider a new study from LendingTree.

When respondents were asked if they would “ever go back to renting,” some 28% of Millennials said yes.

Even worse, 10% said they’d go back to renting this year, while 14% said they’d ditch the mortgage for rent in the next 2-5 years.

Another 4% said they’d be renting within 6-10 years, and the numbers are similarly high relative to other generational cohorts in the 10+ year category as well.

Millennials the Least in Love with Homeownership

back to renting

LendingTree uses the following age ranges:

Millennials: ages 23-38
Generation X: ages 39-53
Baby boomers: ages 54-73

While the numbers aren’t overwhelmingly high, if you look at other age groups, such as Gen Xers and Baby Boomers, Millennials are clearly the least in love with homeownership.

Just over half of Millennials would never consider going back to renting, which sounds pretty good until you consider that 65% of Gen Xers and 68% of Baby Boomers wouldn’t.

As to why Millennials are the most likely to kiss homeownership goodbye to rent again, there was no explanation.

But if you look at the chart above, there seems to be a correlation with age and satisfaction with homeownership.

The older a respondent gets, the less likely they are to go back to renting, which could be a sign of either being more comfortable as a homeowner, or better realizing the positive aspects over time.

Because the Great Recession is only about a decade old, some younger homeowners may not be completely sold on the idea of owning a home, knowing the bottom could fall out at any time.

Additionally, younger folk seem to value their freedom of movement a lot more than older generations. They may also be less interested in what LendingTree calls “residential responsibilities.”

Owning a home is hard, despite what you might think.

When making the rent vs. buy argument, opponents of renting always seem to highlight the throwing away money on rent thing without mentioning all the money you spend on maintaining a property.

Of course, it is getting easier to buy and sell real estate thanks to the surge of iBuyers and other disruptors, though there is a cost to these services as well.

But perhaps making both the mortgage and home sale transaction piece simpler could entice more of the youth to buy into real estate.

Overall, one in six existing homeowners plan to go back to renting over the next decade.

45% of Existing Homeowners Plan to Move This Decade

reason to move

Now some good news for the housing/mortgage market, at least in terms of transactions. Nearly half of existing homeowners plan to move this decade.

The number one reason folks want to move is to enjoy a lower cost of living. Some 30% want to move to cheaper pastures, a trend that has been with us for a while now.

Meanwhile, 28% cited a better job opportunity could sway the them to move. Another 21% want to relocate to be closer to their children.

Some 18% plan to move when they retire, and 16% simply don’t like their current neighborhood.

The bad news is it seems more individuals want to live in cheaper parts of the country, which could continue to put pressure on the starter home segment.

As I wrote before, 45 million Americans are expected to hit first-time home buyer age in the next decade. This is going to require a lot more housing inventory in the bottom third of the market to satisfy demand.

Otherwise, these historically cheaper homes are going to be out of reach for prospective home buyers, and throw the whole ecosystem out of whack in the process.

Read more: Buying a Home in 2020? 11 Tips to Get It Done!

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for nearly 15 years.

Source: thetruthaboutmortgage.com

How Much Space Do You Need in Your Apartment?

Older couple sitting on couch, discussing desired apartment sizeIt has often been touted that bigger is better. But that is not necessarily so. In some instances, the practicalities of smaller can be just as alluring as the trappings of a larger option. Great things come in small packages…right? The debate gets even more complicated when you talk about living space and apartments. Who really knows the actual square footage they need in order to live comfortably? What does 750 square feet actually look like — and does it look that much different from 850 or 950? So when searching for your next apartment, how much space do you really need?

How Much “Personal Space” Do You Need?

Everyone has a different need when it comes to space. Some people like to be able to stretch out and enjoy some added elbow room. Others do not want to have to clean any extra surfaces. In addition, the more people living together, the more space that is usually desired. Kids need less space than adults, and a cohabiting relationship often requires less space than roommates. This means that, before the apartment-searching process even begins, the questions of how much space is needed should be addressed.

How Much Stuff Do You Have?

But the discussion does not stop there. Cultural factors often play a key role in the decision. Generational trends reveal that Baby Boomers and Gen X often desire more spaciousness, while Millennials and Gen Z prefer smaller living spaces in order to make more room for experiences. The desire to acquire and retain more possessions leads to a need for more space. So, if you are someone who has a lot of stuff, you are going to need a lot more space in order to store it. Legendary Comedian George Carlin once observed that the purpose of the home is “a place to store your stuff while you go out and get more stuff.”

Can You Afford the Location?

Location is also a key factor. Thanks to suburban sprawl, larger apartments are more prevalent than ever. But, the closer to a city’s interior that you search, the pricier space becomes. The denser the city, the greater the squeeze on space and budget. Micro-living is a growing trend in large US cities and is already a common feature in large international cities. If you desire a life in the city, space is a need you may have to do without.

Can You Afford Everything Else?

All of these coalesce into the most important factor in the discussion on space: price. In the years since the economic downturn, apartment living has increased in popularity. At the same time, more apartments have been constructed to meet the growing demand. The past couple of years have seen rental costs reach their maximum and, in some cities, even begin to decline. How much rent you can afford leads to the ultimate determination on the value of space. Other factors to include in the equation are utility costs and commuting fees. And, once you have your budget determined, the desired location established, your storage requirements analyzed, and your personal space requirements determined, it is time to find your next apartment home.

To help make that search quick, easy, and successful, visit www.apartmentsearch.com. There, you can search our national database of apartments by all the factors that matter to you. And not only is ApartmentSearch free to use, it will actually pay you a reward when you tell your apartment community that you found your new home using it. The time has come to find your new home. Visit www.apartmentsearch.com today.

Source: blog.apartmentsearch.com