According to a new survey by Apartment List, 12.3% of Millennials plan to “always rent”. This is quite an increase from last year, which was at 10.7%. For those of you who are Millennials, perhaps you will agree with the fact that the biggest factor is affordability.
Why Rent?
We previously wrote a blog on why renting is better than owning to further push its appeal. To briefly summarize, renting is more flexible and maintenance is not as expensive. With a resurgence in traveling and finding affordable ways to do so, it’s no surprise that the amount of people who would rather rent has increased.
Why Own?
On the flip side, owning doesn’t confine you to as many rules on renovating and decorating like renting does. Owning still gives people a sense of pride to have something that will (hopefully) stay within the family. When you decide to own a house, you need to prepare to spend a lot of money right off the bat. Not many Millennials have that kind of money.
The Shift
According to the data, being able to afford a down payment is a major setback. With the constant rise in tuition costs, a lot of Millennials graduated college with an average of $33,654 in debt. After the grace period ends this turns into hefty monthly payments with constant compounding interest. Tack on more monthly payments like rent and bills, this can become rough for many to build up a savings account.
To build on that, your 20s and 30s are a time of finding yourself, your career, and potentially your love-life. Because of this instability, it can be hard to commit to one area and stay there for an extended amount of time. Explore while your young and have the energy to do so. Renting offers the right amount of flexibility for globetrotters.
A down payment is a huge wall for many. Especially with the added cost of mortgage insurance, which can cost just as much as monthly rent. In Boise, it’s a seller’s market, so people can demand higher prices for their properties. Many potential homebuyers are renting while they wait for the market to shift in their favor.
Future Implications
Do you think the percentage of “forever renters” will only increase as time goes on? With the oldest of Gen Z nearing their mid 20s, it will be interesting to see if they run into the same housing troubles Gen X and Millennials are facing. If anything the choice between buying vs. renting is a case by case scenario.
The younger generations are being pushed out of expensive cities and states, and are finding new areas to settle in. Take Idaho for instance, Boise property management companies are practically swamped with applications from new residents. This makes the competition fierce for states and cities that were practically never talked about before. With the push for increased remote employees, you may find that your neighbor works for a company not based in the state that you, and they, live in. Not a bad deal I’d say. However, it does make you wonder if that’s why house prices are increasing in the Treasure Valley.
Looking for a Rental?
Boise property management companies are abundant. If you are one of the 12.3% who’ve decided that they want to rent forever, then consider stopping by Idaho for our Bogus Basin Ski resort this winter. With DJW Property management you can find some very affordable rentals with great square footage. After you fall in love with the environment and people here you may not want to go anywhere else.
