Millennials and the rental market
In most areas of the country, the rental market is strong, and many expect this to continue for an extended period of time. One of the main drivers - Millennials appear content to rent, rather than buy.
There are a number of pragmatic reasons Millennials are renting, and there are also just a number of circumstantial reasons - let's explore:
Pragmatic:
- They don't see the value (and see high risk) in the the housing market based on what the market's done during their formative years.
- They move often - buying is not a good option for a Millennial planning to relocate every couple of years.
- Millennials are disproportionately driven to live in larger urban areas, away from suburban sprawls and single family housing.
Circumstances dictate:
- It's harder to qualify for a home purchase than it used to be.
- Millennials have record amounts of student loan debt, adding to the burden of trying to qualify for a mortgage. And those that can qualify, still often look to save money in an inexpensive rental (or even living at home for an extended period).
There's just a different mindset about home ownership than there used to be, and as a property manager and landlord, that means opportunity for the future.