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:
- 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.
- 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.