It was just a matter of time… Millenials have now officially surpassed Baby Boomers as the largest living generation in the US. This includes individuals born between 1981 and 1997.
With each generation comes different characteristics, and it seems that only 34% of Millenials are homeowners. Even more off-putting? A large 44% of Non-Homeowners in this age bracket say they simply don’t want a house right now.
I would personally attribute this sentiment to the preferences and commitment fear that I see in a lot of millennials. While the thought of saving money is appealing, they also like the flexibility of being able to check out new trendy and up-and-coming neighborhoods when their lease is up. A transient people that tend to enjoy the popular neighborhoods where home prices are higher.
- Family friendly housing that gives room to children and pets
- Storage for gadgets and outdoor toys, including bicycles and camping equipment
- Updated kitchens take their interest in cooking up a level, which is much more affordable for day to day
- Outdoor spaces are just as important as indoor spaces, and millennials enjoy patios
Still, it’s important to note that rental prices have outpaced the home appreciations that we’ve seen covering the media for the last two years in Dallas.
Financing rates would have to increase to 9.1% nationally, for renting to be cheaper than buying. At the current average of 3.7%, that is likely to take a while. Rates haven’t been that high since 1995.