Contrary to what many believe, Millennials are not the ‘renter’ generation. In fact, Millennials purchased a larger percentage (34%) of homes in the U.S. than any other age group in 2017 and the most recent Census Bureau report shows that the homeownership rate among Millennials is finally on the rise.
According to NerdWallet’s Millennials & Homebuying Study, “A majority of Millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.” The top 5 reasons Millennials are choosing to buy over renting are:
To have control over their living space: Many Millennials who rent a home or apartment prior to buying their own homes, dream of the day that they will be able to paint the walls whatever color they’d like, or renovate an outdated part of their living space.
Many others who have waited to add a pet to their families daydream about the day that they’ll be able to go pick out their ‘furever’ friend. Owning your own home gives you the freedom to make those choices.
To have a sense of privacy and security: It is no surprise that having a place to call home, with all that means, in comfort and security, is the #2 reason. As a homeowner, you have control over who has access to your home, and you are able to secure it how you see fit.
To live in a nicer home: Similar to the #1 reason, when you purchase a home, you can choose to live in a nicer home or choose to renovate a home and restore it to its glory. Owning also allows you to accommodate your growing family or a family member who may need to move in.
To feel engaged in their community: Owning a home in a community is one of the major reasons why residents become more civically involved. The stakes are raised once your home value is directly tied to the neighborhood and community in which you live.
To have flexibility in future decisions: Owning a home allows you to use your monthly housing cost as a savings account that can be borrowed against in the future. Having this option available during uncertain times is just one of many reasons why homeowners feel more secure in their homes.
Even with the increase in home purchases among Millennials, some are still reluctant to purchase a home simply because they don’t believe they can qualify for a mortgage. Millennials have a lot of anxiety built up about the home buying process and because they don’t believe they will be approved for a mortgage, they don’t even try. There’s more flexibility than most Millennials think regarding how to qualify for a loan and what’s needed for a down payment.
If you are one of the many Millennials who is debating a home purchase this year, let’s get together to help you understand your options and set you on the path to pre-approval.
