There’s been a lot of speculation about why Millennials have continued to rent more than they buy houses. Millennials are now the biggest generation in the country, and there’s some worry as to why they are less likely to invest in property than previous generations. The following are a few of the reasons why Millennials don’t dive into the housing market often:
- Lack of funds – The cost of going to school has gone up considerably over the past few decades, making it difficult for Millennials to pay back student loans at their level of income, especially right out of school. In fact, finding work following graduation has proven to be a huge challenge for many Millennials, making buying a house something that they don’t even think about.
- Waiting for marriage – Millennials aren’t settling down as soon as their parents’ generation. They don’t see the point of buying a house until they are married, and many Millennials aren’t getting married until their 30’s.
- Different priorities – To many Millennials, being a homeowner just isn’t as important as it once was. They prefer to spend their money going on vacation and seeing the world while they are young. They see owning a house as more of a financial burden that will prevent them from enjoying other things in life.
- They are saving up for their dream home – Millennials that do want to become homeowners aren’t so quick to invest because they are waiting until they can afford their dream home, complete with space for their pets and future children.
These are a few of the reasons why Millennials tend to rent more than buy, but as the generation ages, the trend is beginning to reverse. In fact, having a place to live with their dogs has been cited as a reason for increased home ownership!