It's official - Millennials have surpassed Baby Boomers as the nation's largest living generation according to the Pew Research Center. Born between 1981 and 1997, this generation is now entirely in the age group when traditionally you stop living with parents and even consider purchasing your first home.
While some are entering the home buying market, there are many who simply prefer life as a renter. In fact, there are so many Millennial renters that U.S. News & World Report published an article asking, “Are Millennials the Renter Generation?” earlier this year, noting that only 34 percent of the generation owned a home, and “44 percent of non-homeowner millennials say they simply don't want a house right now.”
So, why are so many Millennials putting off the dream of homeownership? The primary reasons are affordability and freedom according to a rent.com survey of 1,000 renters between the ages of 18 and 34.
Millennials believe they can save a few bucks renting, and when a lease period ends, they are free to explore another neighborhood, city, or state. They are also drawn to trendy neighborhoods where sky high home prices force them to rent.
When it comes to what they're looking for in a rental apartment or home, appfolio.com offers insight in their Renting to Millennials: 10 Facts infographic.
- They need family-friendly housing that accomodates children and pets as 10.8 million Millennials have children, and more than 76% have a pet.
- Bike storage is important as this generation is increasingly trading in their four-wheel vehicle for a two-wheel one.
- 61% of Millennials enjoy cooking, and they are eating out less. For these reasons, they place a premium on having a nice, updated kitchen.
- They want security features where they live to ensure their safety.
- Millennials are looking for housing that allows them to enjoy the outdoors as much as the indoors.
Interested in knowing more about Millennials who are buying a home? Read our earlier blog posts on student loan debt and Millennials being optimistic about homeownership. And earlier this year, we featured a guest post from trulia.com on cities financially-minded Millennials should consider.
On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.