In the United States, there are over 72 million millennials. If you’re part of that generation and have thought about buying a home, you aren’t alone. According to Zonda, 98% of millennials want to become a homeowner at some point if they aren’t already. But why? There are plenty of reasons you may choose to become a homeowner. In this blog, we’ll specifically look at five reasons millennials are buying homes.
Recently I wrote a blog about why owning a house is an investment in your future and how it impacts your ability to create wealth and stability. Millennials, like all other generations, have their own unique insights and perceptions that impact the things they care about and the decisions they make.
So, before jumping into the top five reasons let’s take a look at the graph below which illustrates the full range of reasons why, according to Zonda’s 6th annual survey, millennials made the decision to buy a home.
Their top 5 reasons include building equity, a change in life stage, wanting stability, rising home values, and wanting to make somewhere truly their own. Here’s a look at each in more detail.
Homeownership is a long-term investment that allows you to build wealth, increase your net worth, and become more financially stable. Beyond that, the alternative to owning a home is typically renting. With the way rents have risen so dramatically over time, it may make sense to build your own equity instead of the equity of the person you’re renting from. After all, why would you want to pay your landlord’s mortgage when you can pay your own? And, unlike rent, your mortgage payment doesn’t go up.
A change in life status
As a millennial, you’re reaching your prime homebuying years. That means you may be at the point where you have a life partner, or even have children, and need more space or want to live in a different neighborhood. It could also signify that you’re ready to build deeper roots in your community.
Stability or settling down
This could mean establishing your career or just generally deciding more concretely what you want your life to look and feel like. As that idea becomes clearer, you may want to establish that lifestyle in a particular place and put down roots.
Rising home values
By purchasing a home, you own an asset that traditionally increases in value over time. That can mean your home will have a higher resale value if you decide to move again. Here’s a link to a recent blog about historical and future home value appreciation.
Wanting to make somewhere “mine”
Owning a home gives a sense of freedom because you can customize it however you want, make updates as you see fit, and be yourself in a place that’s solely your own – without having to ask your landlord for permission.
There are plenty of great reasons why millennials are buying homes today. Bay Shores Real Estate is here to guide you through the homebuying process. So. if you’ve thought about becoming a homeowner and any of these reasons resonate with you too, let’s connect to explore your options.