Why Millennials Opt to Rent
In a recent post on Trulia, Sandie Angulo Chen notes how Millennials are distinct from previous generations, "[w]ith Millennials facing an unemployment rate of more than 8% and $1 trillion in student loan debt, they’re increasingly renting instead of buying homes. In fact, the true homeownership rate for 18-34 year olds has fallen to a new low: 13.2%."
First, Chen discusses how featured amenities such as gyms, movie screening rooms, or ubiquitous cell phone reception in many apartment buildings are very attractive, and these same amenities come as a significant expense to homeowners. Second, renting a small space often includes access to shared spaces within a building community or more engagement with an urban community outside of the home.
Third, "[t]he ultimate benefit of renting may arise from the flexibility of leaving for any reason, especially career reasons. Millennials tend to change jobs three times more often than their older counterparts and stay with the same employer for just three years on average, according to the U.S. Bureau of Labor Statistics. Renting instead of buying makes transferring to a new or better job much simpler." Finally, Chen also believes that Millennials opt to rent instead of own houses in part because of home maintenance, which renters are not responsible for.