Why
DO Millennials love to rent? We’re going to take a look at the top four
reasons below. . Millennials now fall between the ages of 20 to 35, just about
the time people would start buying homes. But, they aren’t doing that as much
as they’re renting. Millennials are either about to or have already begun
starting a family, and some have just hit the prime rental age.
Yardi Matrix Report issued its economic
outlook report for the year and reported that the number of Millennials
expected to hit the prime renting ages of 20 to 34 will exceed 2 million this
year. Think that’s a lot?! That’s nothing in comparison to the 70 million
expected to peak in 2024. What does that tell us? That the multifamily sector
can expect a good solid demand from Millennials for at least the next seven
years.
Let
us not forget to mention that there is an expected unemployment rate from
Millennials of more than 8% and $1 trillion in student loan debt. Both of these
factors are reasons why the Millennials are renting instead of buying homes.
However, these are not the only reasons Millennials see a need or have a want to
rent. Let’s take a look at some of the reasons below.
1.
Community
Millennials
love supporting their local communities and the fact that they can walk right
down the street from their house or apartment and frequent their favorite
coffee shop or boutique. They love knowing their money is going to a
locally-owned business rather than some of these greedy corporations.
In
a recent Edelman Digital Study we
found out that a whopping 40 percent of Millennial participants prefer to shop
locally, even knowing that they will have to pay more for their goods.
Millennials want their money to stay close to home, exactly like the places
they shop at. Close to home.
2.
Flexibility
Renting
leaves an open window of escape from that noisy neighbor, when buying could get
you stuck there living next to that annoying neighbor for 30 years or until
that long mortgage is paid off.
Millennials
are more apt to change jobs at least three times more than their older
counterparts and they actually only stay with the same employer for a max of
three years on average, according to the US Bureau of Labor Statistics. Renting
provides much more flexibility to them when it’s time to move cross-country to
their new job. Actually, it is so common that a lot of apartment complexes now
have a special clause in the lease for early termination due to job transfers
more than 50 miles away.
3.
Convenience
This
is a huge reason for Millennials choosing to rent over home buying. Have you
ever had a large appliance break like a fridge or a stove? Your refrigerator
just went kaput and what do you do? If you’re a Millennial, easy! You call your
landlord who sends someone out to look at it and upon inspection decides you
need a new fridge. That is convenience. You didn’t have to call the handyman or
shell out money to buy a new fridge. What about landscaping? That is usually
covered by the landlord. If you own your own home, that is definitely another
responsibility of the homeowner. For Millennials busy lifestyles, it makes more
sense to have fewer items of home maintenance on their to-do list and also on
their budget.
4.
Amenities
This
is an obvious no-brainer if you ask me! Let’s think of some of the perks of
living in an apartment complex and the amenities that come along with it.
Pools, hot tubs, electric car charging ports, gyms, movie screening rooms,
concierge services, underground garages, and that is just to name a few. These
types of amenities would cost a pretty penny for homeowners.
