Why is Buying a Home Not a Big Deal for Millennials?
Depending on who you ask, the Millennial Generation are people born in the early 1980s to the early 2000s. It’s the generation who came of age after The Great Recession. Although the housing market has recovered since the economic downturn of the late 2000s, Millennials are still living with repercussions that other generations didn’t experience in their youth.
For example, Millennials have a greater student loan debt than previous generations. This has caused a restriction on the labor market, limited job and income opportunities. Due to this, Millennials have pushed back important financial decisions like home-buying.
Another reason Millennials aren’t buying houses right away is due to the fact that starting a family is not an immediate goal. Millennials are postponing marriage and having children in order to discover what they want out of life.
You can view the situation from two sides:
- Builds Equity
- Tax Reduction
- Property Tax
- Major Life Milestone
- Stays in Budget
- Paying monthly rent is much easier than the accumulating debt from a mortgage. Especially for those who already have debt from student loans.
- There are even more expenses with closing costs, home insurance, and property tax that all add up in the end.
- Go as You Please
- The chance to pack up whenever you like gives Millennials more opportunities to travel & see world.
- You aren’t tied down by a mortgage, so you’re free to move all over.
- Test the Waters
- Renting provides opportunities to try different neighborhoods before committing to one area.
- Trendy areas in cities that might attract Millennials tend to be less expensive for renters than buyers.
- Maintenance & Upkeep
- Yard work, repairs, and maintenance are usually handled by the property management company.
- Millennials are hard working with jobs and school, the little free time they have they want to enjoy life rather than spending it on upkeep
At the end of the day, there are many pros and cons to buying and renting houses. Go with the option that suits your needs more than the needs of others.
If you’d like to find out information about rentals in the Greater Chattanooga/Northwest Georgia Area, feel free to call DK Property Management. We handle everything from rental services, real estate, and property investment. Call us at (706) 935-4444 to speak with a professional today!