Do You Believe Homeownership Is Out of Reach? Maybe It Doesn’t Have To Be.

Abstract

It turns out, millennials aren't the renter generation after all. The 2022 Consumer Insights Report from Mynd says there's a portion of millennial and Gen Z buyers who are pursuing homeownership as a way to build their wealth, but it may not be exactly the way previous generations have done it. The study explains how they're breaking into the market: "... younger generations of Americans are not buying into that dream in the same way that older generations have. A growing number of Americans are choosing to make their first real estate purchase as an investment property." Instead of buying a home and moving into it themselves, some young buyers are purchasing a home so they can use it as a rental. It says: "Almost half of Millennials and Gen Z are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X." Why Younger Buyers Are Buying a Home To Use as a Rental This strategy allows buyers to continue living in their current location, like the bustle of a city apartment or a neighborhood that they know and love, where they couldn't afford to buy. Instead of giving up on the idea of owning a home, they buy a home in a more affordable area with the intention of renting it out. They live where they want, and they still own a home where they can afford it. Bottom Line If you're thinking about buying a home as an investment strategy to build your wealth, connect with a real estate professional to explore your options and nearby areas that may have homes that fit what you're looking for.