Millennials and the Housing Market
Millennials and the Housing Market ~ Southern Residential Leasing
You may be familiar with “millennials” — a generation born anywhere between the early 1980s to late 1990s. Now, this generation is entering a phase where they’re establishing careers and should seemingly be buying homes. Right? Actually, unlike previous generations, millennials are choosing to rent longer and put off homeownership. There’s a connection between millennials and the housing market: simply that millennials see renting as the better financial option and putting off buying a home.
According to Zillow, people between the ages of 18-34 — millennials! — are the largest demographic purchasing homes in the US. Zillow CEO Spencer Rascoff claims that millennials are skipping starter homes — smaller, more economical homes — in favor of nicer homes they can save up for.
While you may often hear that renting is simply “throwing away money,” Millennials feel less tied down when it comes to renting. They may find better jobs elsewhere and be compelled to move. If you’re a homeowner, it can be difficult to sell your house. While costly and not recommended, it is possible to break a lease and move away for a new job. Renting is also more cost-effective — if an appliance like a washing machine or dishwasher breaks, the landlord is usually responsible for repairs. Meanwhile, if you owned a home, you would be paying out of pocket for repairs, which can add up!
There are also a few different factors that play into longer rentals: data from the Census Bureau shows fewer 25-34-year-olds are living with a spouse or partner, which could also be delaying the home-buying process.
Simply put, Millennials and the housing market do not mix. But that’s okay, as rentals have never been more popular! Is a long-term rental in your future? If so, check out our long-term rentals in Pensacola, Alabama, Perdido Key, and more! Our team of dedicated professionals is ready to help you find your next home!