Debunking Myths About Millennials Buying Homes
March 13, 2019
While baby boomers might have made their investments at an early age in life, they end up thinking millennials may not be as smart. But that is actually not true. Millennials, while more focused on making their careers, actually make much more smart investments when it comes to things like buying houses. And that is why 2017 was the year in which the demand for new houses grew exponentially, and the reason is expenditure by millennials.
Millennial households, run by those from 22 to 40, are capable enough to fight financial uncertainties but are just a tad behind on their entry into the real estate market as they explore and conquer other avenues. The onus lies on builders to strategically make homes that are suitable for the buyers. The numbers will tell you that the ‘comfortable’ and ‘idealistic generation represents the largest number of homebuyers in the last 3 years. In fact, take a closer look at these myths that surround millennials buying homes, and match them with reality to get a closer look at how millennials are the best home buyers in any generation.
Myth: Millennials would rather rent than buy.
Reality: The last thing we want is to sign renter’s agreement.
The dream to own a home is still alive and kicking. A minimalist sentiment has only replaced traditional ideas such as to have a huge lawn or parking space for 4 cars. The demand is for small homes which are easy to maintain, conveniently located and more importantly, they should be accessible.
There is enough to worry about at work that we aren’t willing to spend the rest of our days fretting over hassles that come with traditional methods of ownership. Similarly, a landlord breathing down the neck isn’t appreciated.
Myth: Millennials are not financially sound.
Reality: We just like to save and spend on things that we REALLY need.
We save enough to afford a certain kind of lifestyle. There are a ton of apps especially in the 21st century that have made us financially cautious and help us manage our wealth. Most of our savings are directed towards one goal- buying a house.
Watch any new age dramady and the actors, like their inspirations, will take loans from their company even if it means that buying that perfect home is a possibility. If it fits our budget, consider even a luxurious house as sold.
Myth: Millennials are not as wealthy as others at the same age.
Reality: There is a lot of money where we come from.
Statistics say that millennial households are earning more than ever. Greater than baby – boomers ever did. The numbers are even better because they show how women have become an integral part of the workforce and substantially contribute to the economy.
An increase in earnings, a contribution of both men and women towards their goals affects our purchasing power and then the real-estate market. Even after paying off personal loans, there is a substantial amount of savings that can make owning a home affordable.
Myth: Millennials aren’t ready to ‘settle down’.
Reality: We actually have a strong sense of commitment.
The conventional idea of marriage is to find a partner, buying a house, involving children and ride the wagon for 7 eternities. Millennials do not differ in this sense. We too want that perfect white picket fence, sip a nice of tea on the porch with our beloved and grow old in what we can call a ‘Home’.
Much of us are full-time employees, some under the age of 30 and not ready to marry yet, but still generate income through other avenues such as freelance work. Rest assured that this money goes into our home-shaped piggy banks.
These myths divert us from the fact that millennials actually have planned ahead for their future. There should be enough in the bank so that one can afford child care, health care and take care of our folks at the same time. Greenery, gaming areas, recreational sports, clubhouses are things that pique our interest and drive up the house-market sales.
Approximately 90% of the millennials want to own a home and are tirelessly saving or have enough to afford one. They are flocking to different locations all over the globe to find that perfect nesting spot that grants them enough mobility of thought at least.