The Millennial Gap: Housing and the Evolving American Dream
Owning your own home used to be a centerpiece of the American dream, but is that still the case? Demographics are changing in the real estate market. The recession has displaced millions of homeowners and scared an entire generation of young buyers out of the market. At least for now.
Homeownership in the U.S. hit a nearly 18-year low in the second quarter of 2013, according to the Department of Commerce. Homeownership rates declined to 65.1 percent, the lowest level since 1995.
This perceived risk of homeownership has created many new opportunities for rental properties for those looking to manage their risk, and financial obligations. A mortgage has not been the most attractive proposition to the generation with the most student debt in history.
In a Letter from a Millennial in the Baltimore Business Journal, Associate Editor James Briggs says “…people in my generation have mountains of student loan debt, and we’re so thoroughly freaked out by the Great Recession that we’d rather live in our parents’ basements than sign our names to more big loans.”
Millennial buyers have greatly raised the demand for rental properties, but are also looking for greater diversity in the market. The majority are young professionals looking for convenient city access and walkable conveniences. This trend comes as no surprise. Car payments are just as unappealing as mortgages and student loans, so many are opting for renting in urban centers with reliable public transit.
This trend of stabilizing and increasing post recession home prices, along with decreasing homeownership rates presents a great opportunity for investors. Increasing rental rates and resale values make this the perfect time to pick up a rental property. To learn more about how Tradewind Properties can help you with the process, contact us today.