A survey conducted shows that millennials are not showing interest in the American dream of owning a house. Rather, they are choosing to rent apartments.
Many experts have argued about the reasons millennials do not want to own a house. Some experts argued that student loan debts, anxiety or fears are the reasons millennials seems to favor renting a home. Yet, other experts are of the opinion that the lack of commitment is the key factor why millennials are not buying houses.
Of a truth, millennials value homeownership, but first, they have to tackle the issues of making more money, settling down, having kids -- all of which rank higher in priority than the thoughts of owning a house. Millennials tend to ask themselves why they should own a house when they are not ready to settle down or start a family.
Reasons they are not buying
1. They want to move around because they do not like their jobs.
The purchasing power of the U.S. dollar is on a steady decline as the indiscriminate printing of money continues to water down the value of a dollar. To make matters worse, millennials are mostly underpaid and overworked, due to lower salaries, buying a house is the last thing on the mind of most millennials. Most of them believe they are under-paid and they will instantly jump ship if they find a better offer.
Therefore, most millennials want to stay light and mobile since it is not easy to move around when you own a property. You might be forced to sell the property at unfavorable terms if you relocate as part of a career move. In contrast, a rented apartment provides all the necessary social amenities and you won't have to worry about selling anything if you need to move.
2. Students loan debt
Millennials between 18-29 years of age report that they or someone in their household has student loan debt. With a trillion dollar in student loan debt, buying of house does not sound fiscally wise for millennials at a time when funds are low and debts are high. Most millennials are still struggling to pay off their student debts loan; therefore, saving for a down payment that qualifies them for a mortgage is not in anyways in their agenda.
3. Spending anxiety
Millennials were the worst hit during the 2007-2009 economic recessions because they had to contend with the effects of starting a career at the peak of the downturn. Hence, many of them have learned to be more careful with their money. An expert at WMOption notes that a house is no longer an asset and "traditional investments do not provide the kind of returns commensurate with alternative investments"; hence, millennials would rather rent a home and invest their money in other stuff.
The decision to buy or rent a home is as personal as it gets. The herd mentality suggests that most millennials would not buy a house. Explore your options, whatever you do, make sure it makes you happy and you can sleep with both eyes closed at night.