Millennials’ Housing Prefferences
BisNow’s Jarred Schenke writes a two part series about Millennials and how they live and work. He introduces us to Reid Ramsay, who works by his own admission 10 to 12 hours a day, is single living at The Drexel in Dunwoody. He says his social life is connected to his work. His office is flexible: Reid can work from home, at a bar, or at the DeskHub in Buckhead. Renting an apartment gives him flexibility, especially as a bachelor.
Then there’s Zoe Fox. Like Reid and other Millennials, Zoe rents, and is now in her third Gables property. “Buying is a big commitment. Renting gives you the flexibility where if you get a new job and move around, you can do that easily,” she says. “Plus, if it’s broken, they will come fix it. I don’t want to spend the time finding [repairmen].”
Did you know the millennial generation rents the most and makes up 27.3 percent of all renter households? The millennial generation, currently between the ages of 18 and 34, are living with their parents much more than the previous generation at this stage of their lives. In some states, for example, upwards of 40% of millennials are living at home.
Why do millennials rent?
- Flexibility – if you don’t know how long you will stay in a particular area, renting works well
- Career stability – many young people seem to change jobs frequently, renting works well
- Credit – is either poor or not well established. The good news here for renters is that on time rental payments can establish credit.
- Income instability – It is hard to make a long term commitment on a house when you have worries about a stable income
- No maintenance expenses – when something breaks, just call the landlord. Maintenance can add significantly to the cost of home ownership.
- No down payment – while zero down payments are available, banks like to have the homeowner put some skin in the game. 10% to 25% was the usual down payment.
- You may be closer to work from an apartment than from a house you can afford.
- Amenities – Millennials like amenities, like a pool, gym, meeting and rec rooms, other people your age. High end apartments are like college dorms for adults.
Zillow predicts millennials will be the biggest homebuyers in 2015, (I think Zillow missed the boat here). While Millennials are aware that lending standards have loosened and mortgage rates are near four percent making homes more affordable for first-time buyers, a recent study concluded that one-third of first time homebuyers don’t know how to begin the home buying process.
If at some point soon Millennials do start to buy houses, we need to be conscious of the fact that they are newbies and may require more understanding, patience, and handholding. It will be worth it. Millennials are the largest generation on earth.
At Val Buys Houses LLC, we specialize in helping homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home. We buy for cash, therefore we can help you sell it fast to resolve any situation, or give you as much time as you need.
We care about our community in Cobb county and Atlanta. At Val Buys Houses LLC we take a lot of pride in providing excellent customer service. We have come across all scenarios, we are not here to judge; only to help.
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