“Should I rent, or should I own a home instead?” This is one of the most common questions individuals ask themselves when deciding to shift to a new location.
Interestingly, as per recent studies and surveys, for the first time in the history of the United States of America, a huge percentage of the young generation prefers to rent rather than buy a home.
It has been speculated for decades that the enthusiastic generation of millennials would be the one to embrace and further fuel the idea of homeownership. However, they have surprised market pundits by completely transforming the housing market with their unique expectations and spending habits.
In addition to booming demand for homes and increasing property prices, several reasons are fueling this exciting trend of renting homes instead of assuming ownership. Given this subject’s importance, we asked a few experts who will be attending our upcoming real estate conferences to share their speculations with us. Read on to know more:
As per a 2013 Gallup poll, millennials are marrying later than older generations. While raising children is on their agenda, they tend to delay it and take their time to achieve stability in their lives. In addition to this, they are more likely to adopt an on-the-go lifestyle which may inevitably put their home-owning plans on the backburner.
Last but not least, the young generation continues to reel under the aftermath of the Great Recession (2007-2009). Many are still bearing the brunt of high student loans and low wages, which directly resulted from the economic crisis. Because of this, crucial life goals of millions — such as home purchasing — got actively shelved or delayed.
Why Renting Reigns
Experts at top real estate conferences in Dubai have pointed out that younger professionals tend to rent homes that mirror their lifestyle and income since they might be deficient in terms of liquid assets.
However, while we have dealt with the financial and budget aspect of the subject, it is vital to take into consideration that these aren’t the only factors causing the rental housing boom. For millennials, renting is very much a part of their lifestyle and they are deeply interested in the unique experiences provided by properties in the rental market. We are talking about the type of property that’s on offer, its sustainability features, and of course, the presence of trendy amenities.
Finally, as mentioned earlier, millennials are likely to spend a sizable part of their income traveling the world; therefore, fully furnished, smart properties with shorter leases catch their attention. Another reason for increased interest in rental buildings and co-living properties is that they come with property managers who are entirely responsible for upkeep and maintenance.
Is this marked shift in the Great American Dream of homeownership here to stay? What are the things millennials look for in a property while on a house hunting spree? Searching for answers to these important questions? This is your cue to book your tickets to the Realty 2.0 Conference’s USA edition which will be attended by bigshots of the industry!