Millennials Are Buying Instead of Renting – But Why?

Millennials Are Buying Instead of Renting – But Why?

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Some Realtors have the false impression that millennials only want to rent property. There are a lot of misconceptions surrounding this train of thought, but it might hurt your business more than it helps. According to recent studies, most millennials – approximately 93% – choose to buy their homes so they have full control over their living space. But there are other reasons, too, including:

  • Stronger sense of privacy and security. 90% of survey respondents buy a home with privacy or security in mind. Moving away from parents or roommates is difficult to do, but it is a very liberating feeling in the end.
  • Affording a nicer home. Some millennials are just ready to upgrade. Approximately 81% of survey respondents cited the opportunity to live in a nicer home as a primary reason for purchasing.
  • Greater community engagement and involvement. Purchasing a home gives you invested interest in the immediate community. Most homeowners quickly become closely involved in the neighborhood – whether it was their original intention or not.
  • More flexibility in the future: Homeowners tend to have greater control over every aspect of their life, including the decisions that need to be made in the future. Approximately 53% of respondents cited flexibility in decision-making as a primary reason for purchasing.

The reasons outlined above focus on millennials more than any other age group or demographic, but there’s another factor that is also spurring interest in home ownership: the increasing price of rent from coast-to-coast.

Buying a Home is More Affordable than Renting

According to a recent report by ATTOM Data Solutions, purchasing a home – at its median price tag – is more affordable than a three-bedroom property rental in 54% of all the U.S. counties polled. The report goes on to highlight rising rent costs which, in some counties, are growing faster than the region’s average weekly wages.

However, renting is still more affordable in some areas – including the nation’s 14 most populated counties. Some cities where it’s still more affordable to rent include New York City, Las Vegas, Miami, Los Angeles and San Francisco.

Turning Dreams Into Reality

But millennials still want to buy property. And many of them are responsible and disciplined enough to turn their dreams into reality.

A recent study by Bank of America highlighted some facts about millennials that show their ability to manage money and plan for the future. Per the report, 63% are actively saving money – and nearly half of them have $15,000 or more in their bank account. Approximately 57% have clear goals or milestones for their monthly savings – and 67% meet those goals every single month.

Giving Credit Where Credit is Due

Millennials are worthy of more credit than we give them. Between the desire for independence, a willingness to take risks and a proven ability to manage money effectively, they have a lot more to offer society than first meets the eye. While they don’t always stick to tradition, their motivation cannot be denied.

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